Loan is interest-free and payable on demand

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Deerwood Corporation lends its principal shareholder, Lafayette, $706,400 on July 1 of the current year. The loan is interest-free and payable on demand. On December 31, the imputed interest rules are applied. Assume that the Federal rate is 8%, compounded semiannually.

As a result, Lafayette has dividend income of $.

Reference no: EM131288474

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Loan is interest-free and payable on demand : Deerwood Corporation lends its principal shareholder, Lafayette, $706,400 on July 1 of the current year. The loan is interest-free and payable on demand. On December 31, the imputed interest rules are applied. Assume that the Federal rate is 8%, comp..

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