Describe whether john is entitled to a bad debt deduction

Assignment Help Financial Accounting
Reference no: EM13130556

During 2011, John was the chief executive officer and a shareholder of Maze, Inc. He owned 60% of the outstanding stock of Maze. In 2008, John and Maze, as co-borrowers, obtained a $100,000 loan from United National Bank. This loan was secured by John’s personal residence. Though Maze was listed as a co-borrower, John repaid the loan in full in 2011. On Maze’s Form 1120 tax returns, no loans from shareholders were reported. Discuss whether John is entitled to a bad debt deduction for the amount of the payment on the loan

Reference no: EM13130556

Questions Cloud

Minimax and decision tree payoff questions : For a given event, if the payoffs for alternatives 1, 2, and 3 (the only alternatives) are 50, 125, and -50 respectively, what is the regret associated with alternative 1?
Balance sheet of starbucks company : If your are one of the audit team members who is auditing Starbucks company, suggest some procedures you think the audit team would use to complete their audit work on the the inventory accounts on the balance sheet of Starbucks company.
Compute the concentration and the stoichiometry : The volume of potassium permanganate required to titrate 10 mL of the new hydrogen peroxide (mL):20mL (c) Calculate the concentration of H2O2 from the volume of KMnO4 used and the stoichiometry of the reaction (MW of H2O2 is 34.01).
What is its molecular formula : A compound contains 69.94 percent iron and 30.06 percent oxygen. What is its molecular formula if the molar mass of the compound is 199.55 grams per mole?
Describe whether john is entitled to a bad debt deduction : Though Maze was listed as a co-borrower, John repaid the loan in full in 2011. On Maze’s Form 1120 tax returns, no loans from shareholders were reported. Describe whether John is entitled to a bad debt deduction for the amount of the payment on th..
What are the son and daughter bases in the stock : Hobbes gave his son ABC stock valued at $100,000 that he purchased for $60,000 and his daughter EFG stock valued at $100,000 that he purchased for $250,000. Hobbes paid $30,000 in gift taxes on each of these gifts. What are the son's and daughter'..
How should ace record the purchase : Ace Bonding Company purchased merchandise inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase?
What are the tax consequences to justin : What are the tax consequences to Justin for these expenditures when the restaurant opens in July? For Rachel?
Find probability that sample mean will between value : What is the probability that the sample mean will be between M = 510 and M = 520? In symbols, what is p (510

Reviews

Write a Review

Financial Accounting Questions & Answers

  Elucidate the amount of goodwill or other intangible assets

Based on Nike Inc's acquisition of Converse (shoe company): elucidate the amount of goodwill or other intangible assets derived from the transaction and explain whether or not you support that this value was created as a result of the business co..

  Principle of adequate disclosure

Briefly explain what is meant by the principle of adequate disclosure and How does professional judgment enter into the application of the principle of adequate disclosure?

  Determine the current ratio for 2006

Determine the current ratio for 2006, Calculate the quick ratio for 2006 and Calculate receivable turnover for 2006.

  Explain the type of lease this is to earth leasing

Determine as well as concisely but explicitly explain the type of lease this is to Earth Leasing

  Evaluate the net present value

Evaluate the net present value. (Negative amount should be shown by a minus sign. Round discount factor(s) to 3 decimal places, other intermediate evaluations and final answer to the nearest whole dollar.)

  Illustrate what is impact of this transaction on net open

XYZ Company accepted a national credit card for a $5,000 purchase. The cost of the goods sold is $4,000. The credit card company charges a 3% fee. Illustrate what is the impact of this transaction on net operating income?

  Illustrate what are the yearly depreciation expenses in this

The machine is expected to have a working life of six years. If straight-line depreciation is used, illustrate what are the yearly depreciation expenses in this case?

  Evaluate of an equation for electricity cost

Evaluate of an equation for electricity cost (Y) as a function of units produced (X) using the high-low method and using that equation, forecasting electricity cost at a specified volume units produced.

  Service revenue earned on account

What kind of transaction is a service revenue earned on account

  Determine why there is a change in wacc

Finally, determine why there is a change in WACC and explain the impact of the components of capital structure on a company’s cost of capital.

  Illustrate what does inventory levels need to be maintained

Illustrate what does Inventory levels need to be maintained at 10% of the next months’ cost of goods sold. The gross margin for Spacely is 40%. There was $1,800 of inventory on hand at the end of December.

  Find what transfer price would you recommend

Find what transfer price would you recommend and why and evaluate what transfer price would you recommend if the Battery division is now selling 1,000,000 batteries a year to retail outlets?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd