How much will fabio recognize in net income for tax

Reference no: EM133659818

Question: LMI Company is? 80% owned by Fabio. On January 1 of the current? year, LMI makes a loan of $ 49 comma 500 to Fabio. The loan carries an interest rate of 6?%. The prescribed rate of interest at the time of the loan is 9?%. The loan requires that Fabio make annual payments of $ 19 comma 800?, starting in the following taxation? year, until the balance is repaid. How much will Fabio recognize in Net Income for Tax purposes related to the loan in the current? year

Reference no: EM133659818

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