Barry and Larry,who Are Brothers,are Equal Owners in Chickadee Corporation

question 67

Multiple Choice

Barry and Larry,who are brothers,are equal owners in Chickadee Corporation.On July 1,2016,each loans the corporation $10,000 at an annual interest rate of 10%.Both shareholders are on the cash method of accounting,while Chickadee Corporation is on the accrual method.All parties use the calendar year for tax purposes.On June 30,2017,Chickadee repays the loans of $20,000 together with the specified interest of $2,000.How much of the interest can Chickadee Corporation deduct in 2016?

• A)$0
• B)$500
• C)$1,000
• D)$2,000
• E)None of the above

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Definitions:

Treat Followers

The manner in which a leader interacts with and regards their followers, affecting their motivation and performance.

LMX

Stands for Leader-Member Exchange, a theory emphasizing the quality of relationships between leaders and followers as central to leadership effectiveness.

Group Average

The mean value derived from a set of numerical data, representing the central or typical value in a collection of numbers.

Mature-partnership Phase

A stage in a relationship characterized by mutual respect, deep understanding, and shared goals, often seen in long-term personal or professional relationships.