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:

Developmental Milestones

Specific functional and physical abilities seen in infants and children as they grow and develop, used to gauge their progress against typical patterns.

Material Culture

The objects associated with a cultural group, such as tools, machines, utensils, buildings, and artwork; any physical object to which we give social meaning.

Plastic Objects

Items made from polymer-based materials, versatile in use and present in various aspects of daily life, from packaging to household goods.

American Culture

A complex system characterized by a diverse mix of beliefs, customs, arts, and traditions shaped by the history and wide-ranging ethnic backgrounds of the United States.