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Find how much of the loan will Tamika recognize in income

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Problem 1: SDC Company is 100% owned by Tamika. On January 1 of the current year, SDC makes a loan of $27,000 to Tamika. The loan carries interest at the rate prescribed within the tax regulations. Tamika pays $10,800 on the loan on June 30 of the current year, $10,800 on September 30 of the following year, and pays the balance of $5,400 on November 30 of the following year. For the current year, how much of the loan will Tamika recognize in her income?

A. $16,200
B. $0
C. $27,000
D. $8,100

Reference no: EM132829220

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