On January 1, Sandi Borrows $40,000 from G&H Accounting Firm

question 35

Multiple Choice

On January 1, Sandi borrows $40,000 from G&H Accounting firm, her employer, to pay-off charge accounts and other personal loans. Sandi must repay the $40,000 loan at the end of 5 years. Because Sandi has been loyal to her job, G&H is not charging Sandi interest on the $40,000 loan. The applicable federal interest rate is 6%. If Sandi has total net investment income for the current year of $200:
I.Sandi has compensation income of $2,400.
II.Sandi has a nontaxable gift from her employer of $2,400.
III.G&H is allowed a deduction for $2,400 of compensation paid to SandI.
IV.There are no tax effects because Sandi's net investment income is less than $1,000.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Only statements I and III are correct.
• D)Only statements II and IV are correct.
• E)Only statements II and III are correct.

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Definitions:

Pain Relief

Techniques or medications used to reduce or eliminate pain in individuals.

Mechanical Ventilation

A medical intervention that uses a machine to assist or replace spontaneous breathing.

Supine Position

A body position lying face up on the back, commonly used in medical contexts.

Patient Viewing

The observation of patients, often using specific medical equipment or systems, to monitor their health status.