Which of the Following Interest-Free Loans Is Subject to the Imputed

question 6

Multiple Choice

Which of the following interest-free loans is subject to the imputed interest rules (i.e., interest must be imputed on the loan) ?
I.Marilyn loans $24,000 to her grandmother and she uses the money to pay personal expenses and take a vacation. Her grandmother's sole income is from Social Security.
II.Pineview Corporation loans $20,000 to Catherine, an employee. Catherine uses the proceeds as a down payment on a house. Catherine's net investment income for the year is $300.
III.Scott loans $65,000 to his son. His son uses the money to open a new business. During the current year, the business shows a loss and his son has no other sources of income.
IV.Alaric Corporation loans $27,000 to its principal shareholder. The shareholder uses the funds to buy additional shares of stock in Alaric. The shareholder is deemed to receive $8,500 of dividends from Alaric during the year.
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• A)Only statement II is correct.
• B)Only statements I and III are correct.
• C)Only statements II and IV are correct.
• D)Only statements I and IV are correct.
• E)Only statements II and III are correct.

Recognize the steps involved in program planning and development, including the assessment of resources and articulation of client needs.

Distinguish between different types of contracts used in social work and their legal and ethical implications.

Identify strategies for prioritizing client problems and setting realistic intervention plans.

Comprehend the concept of self-determination in culturally competent social work practice.

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Definitions:

Nutrient

Substances obtained from food that are vital for growth, metabolism, and overall body function.

Polysaccharide

A carbohydrate molecule composed of long chains of monosaccharide units bound together by glycosidic linkages.

Glycogen

A multibranched polysaccharide of glucose that serves as a form of energy storage in animals, fungi, and bacteria.

Vitamin Deficiency

A condition resulting from the lack of essential vitamins in the diet, leading to various health problems.