Ron and Tom Are Equal Owners in Robin Corporation

question 34

Multiple Choice

Ron and Tom are equal owners in Robin Corporation. On July 1, 2012, each loans the corporation $20,000 at annual interest of 10%. Ron and Tom are brothers. Both shareholders are on the cash method of accounting, while Robin Corporation is on the accrual method. All parties use the calendar year for tax purposes. On June 30, 2013, Robin repays the loans of $40,000 together with the specified interest of $4,000. How much of the interest can Robin Corporation deduct in 2012?

• A)$0.
• B)$1,000.
• C)$2,000.
• D)$4,000.
• E)None of the above.

Knowledge of various methods for conducting performance appraisals and their applicability.

Recognize common errors in performance appraisals and how they impact evaluation.

Comprehend the principles of scientific management and their influence on job design.

Identify types of alternative work arrangements and their benefits and drawbacks.