The Effects of a Below-Market Loan for $100,000 Made by a Corporation

question 49

Multiple Choice

The effects of a below-market loan for $100,000 made by a corporation to its chief executive officer as an enticement to get him to remain with the company are:

• A)The corporation has imputed interest income and the employee is deemed to have received a gift.
• B)The corporation has imputed interest income and dividends paid.
• C)The employee has no income unless the funds are invested and produce investment income for the year.
• D)The employee has imputed compensation income and the corporation has imputed interest income.
• E)None of the above.

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Definitions:

Display Of Contempt

An overt expression of disdain or disrespect towards another, often characterized by facial expressions or dismissive behavior.

Predictor Of Divorce

Factors or behaviors scientifically shown to increase the likelihood of a marriage ending in divorce.

John Gottman

A psychologist recognized for his work on marital stability and divorce prediction through extensive research on couples' interactions.

Invulnerable Responses

Ignoring, laughing, or being silent in response to a hurtful message.