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Wally is employed as an executive with Pay More Incorporated. To entice Wally to work for Pay More, the corporation loaned him $20,000 at the
- Wally is employed as an executive with Pay More Incorporated. To entice Wally to work for Pay More, the corporation loaned him $20,000 at the beginning of the year at a simple interest rate of 1%. Wally would have paid interest of $800 this year if the interest rate on the loan had been set at the prevailing federal interest rate. 2 PART QUESTION
- Wally used the funds as a down payment on a speedboat and repaid the $20,000 loan (including $200 of interest) at year-end. Does this loan result in any gross income to either party, and if so, how much?
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- Assume instead Pay More forgave the loan and interest on December 31. What amount of gross income does Wally recognize this year?
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Standards For The Professional Practice Of Internal Auditing Statements On Internal Auditing Standards Statement Of Responsibilities Of Internal Auditing Code Of Ethics
Authors: Inst
1st Edition
0894133462, 978-0894133466
