Benny Loaned $100,000 to His Controlled Corporation

question 33

True/False

Benny loaned $100,000 to his controlled corporation.When it became apparent that the corporation would not be able to repay the loan in the near future, Benny canceled the debt.The corporation should treat the cancellation as a nontaxable contribution to capital.

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Definitions:

Craving

An intense, often uncontrollable desire for a specific stimulus, such as a drug, food, or activity.

Heroin

Heroin is an opioid drug made from morphine, a natural substance taken from the seed pod of the various opium poppy plants, which is highly addictive and illegal, used for its euphoric effects.

Antagonist Drugs

Medications that block or dampen the action of neurotransmitters or hormones, often used in the treatment of various diseases and conditions.

Psychoactive Drugs

Substances that affect the mind, mood, or other mental processes, often used recreationally or as medication.