Benny Loaned $100,000 to His Controlled Corporation

question 65

True/False

Benny loaned $100,000 to his controlled corporation. When it became apparent 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:

Myocardial Ischemia

A condition characterized by reduced blood flow to the heart muscle, leading to chest pain and potential heart damage.

Type B Personality

Type B Personality is characterized by lower stress levels, a relaxed attitude, patience, and a laid-back approach to life, contrasting with the high-strung Type A personality.

Easy-going

Describes a relaxed, tolerant, and stress-free attitude, with a low inclination towards getting upset or anxious.

Anger and Hostility

Emotional states characterized by strong displeasure and antagonism, with hostility being a more prolonged and pervasive form of anger.