. Use RIA Checkpoint to answer the following questions.

9. Corey owns One Stop, a service station. Beginning in 2018, in order to increase business, Corey started to offer a free beer to any customer, of legal age, who made a purchase at the service station. After Corey implemented the free beer offer, his business increased significantly over the prior five years. Coreys costs related to the free beer for 2023 was $20,000. Corey wants to know if the $20,000 is deductible as a valid business expense. Are you able to find any cases specifically dealing with the deductibility of free beer promotional expenses for a service station?

a. Yes, a U.S. Supreme Court case from 1957.

b. Yes, a U.S. Court of Appeals case from 1997.

c. Yes, a Tax Court Memo case from 1982.

d. Yes, a U.S. District Court case from 2015.

10. Craig wants to buy a car and his parents would like to give him an interest-free loan of $15,000 to help him out. However, Craigs parent have heard that even though they are not actually receiving any interest on the loan, according to the internal revenue code, they may still have to pay tax because of the imputed interest rules on loans with below-market interest Craig finds this hard to believe but asks you to check it out for him. You learn that this is true. However, you also notice that loans under a certain amount are not subject to these rules because they are considered de minimis in nature. To avoid the rules, Craigs parents should limit the loan amount to:

a. $12,000 according to IRC 7872(c)(2).

b. $10,000 according to IRC 7872(c)(2).

c. $20,000 according to IRC 7872(c)(2).

d. $100,000 according to IRC 7872(c)(2).