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:

Forced Sterilization

A coercive practice where individuals are sterilized without their informed consent, often targeting marginalized communities.

Overpopulation

A situation where the number of people exceeds the capacity of the environment to support life at a comfortable or sustainable level.

Social Inequality

Within a community or society, there is an inequity in opportunities and outcomes for distinct social statuses or positions.

Human Ecology

An interdisciplinary field focusing on the relationships between humans and their environments, including urban settings and natural landscapes.