LO.8 Assume the same facts as in Problem 40, except that Jeffs share of corporate taxable income

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LO.8 Assume the same facts as in Problem 40, except that Jeff’s share of corporate taxable income is only $8,000, and there is no distribution. However, the corporation repays the $10,000 loan principal to Jeff. Discuss the tax effects. Assume that there was no corporate note (i.e., only an account payable). Does this change your answer?

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South Western Federal Taxation 2013 Corporations Partnerships Estates And Trusts

ISBN: 9781133495574

36th Edition

Authors: William H. Hoffman, William A. Raabe, James E. Smith, David M. Maloney

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