Imputed Interest Rules and Policies Include Which of the Following

question 143

Multiple Choice

Imputed interest rules and policies include which of the following?
I.Gift loans have no income tax effect to the lender.
II.Any loan of $10,000 or less is exempted from imputed interest rules.
III.On gift loans of $100,000 or less, the imputed interest on the loan cannot exceed the borrower's net investment income for the year.
IV.With a loan to a shareholder, a corporation can deduct the imputed payment.
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• A)Only statement I is correct.
• B)Only statements I and IV are correct.
• C)Only statement II is correct.
• D)Only statements II, and III are correct.
• E)Only statements II, III, and IV are correct.

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Definitions:

Carbanion

A negatively charged ion (anion) of carbon that carries a lone pair of electrons, making it extremely reactive in organic reactions.

Hydride Shift

A rearrangement reaction where a hydride ion (H-) moves from one carbon atom to another within a molecule.

Methyl Shift

A rearrangement reaction where a methyl group in a molecule moves from one carbon atom to an adjacent carbon.

Zaitsev's Rule

A rule in organic chemistry that predicts the more substituted alkene as the major product in elimination reactions.