Business, 18.10.2019 00:00 gabby0524

Five years ago, tom loaned his son john $20,000 to start a business. a note was executed with an interest rate of 8%, which is the federal rate. the note required monthly payments of the interest with the $20,000 due at the end of ten years. john always made the interest payments until last year. during the current year, john notified his father that he was bankrupt and would not be able to repay the $20,000 or the accrued interest of $1,800. tom is an accrual basis taxpayer whose only income is salary and interest income. the proper treatment for the nonpayment of the note is: a. no deduction. b. $3,000 deduction. c. $20,000 deduction. d. $21,800 deduction. e. none of the above.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 11:50

After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?

Answers: 1

Answer

Business, 22.06.2019 18:10

Consumers who participate in the sharing economy seem willing to interact with total strangers. despite safety and privacy concerns, what do you think is the long-term outlook for this change in the way we think about interacting with people whom we don't know? how can businesses to diminish worries some people may have about these practices?

Answers: 1

Answer

Business, 22.06.2019 19:30

Alaska king crab fishing in the 1960s and '70s was a dangerous but rich fishery. boats from as far away as california and japan braved the treacherous gulf of alaska crossing to reach the abundant king crab beds in cook inlet and bristol bay. suddenly, in the early 1980s, the fishery crashed due to over fishing. all crabbing in those areas ended. to this day, there is no crabbing in bristol bay or cook inlet. a. how would an economist explain the decline of the alaska king crab fishery

Answers: 3

Answer

Business, 22.06.2019 20:20

Digitalhealth electronics inc. is a company that builds diagnostic devices. it was the first company to develop a compact mri scanner by reconfiguring the components of the mri technology. this smaller and user-friendly version of the huge mri scanner created demand from small hospitals, nursing homes, and private practice doctors who were earlier dependent on the scanning machines in large hospitals. which of the following types of innovations does this scenario best illustrate? a. disruptive innovation b. incremental innovation c. radical innovation d. architectural innovation

Answers: 3

Answer

You know the right answer?

Five years ago, tom loaned his son john $20,000 to start a business. a note was executed with an int...

Questions