How should Jezebel treat the bad loan for tax purposes

Assignment Help Accounting Basics
Reference no: EM132504678

Question - Jezebel lanes her friend $7,000 to buy used car. She had her friend sign a note with repayment terms and set a reasonable interest rate on the note because she wanted her friend to understand that this was purely a loan and not a gift. Her friend is now on disability and has made it clear that she has no way of paying back the loan. How should Jezebel treat the bad loan for tax purposes?

Reference no: EM132504678

Questions Cloud

Determine the amount of deficiency : Ayayai Corporation, having recently issued a $20,009,700, 15-year bond issue, Determine the amount of deficiency
What rate of interest is being paid on the loan : Bridgeport Company purchased a machine at a price of $92,800 by signing a note payable, what rate of interest is being paid on the loan
Calculate the amount of expenses Katie may deduct : If the studio is not a hobby, the calculate the amount of expenses Katie may deduct, and explain how she may report the income and expenses on her tax return
Determine the proceeds of the note : Question - Proceeds from Notes Payable. Determine the proceeds of the note, assuming the note carries an interest rate of 5%
How should Jezebel treat the bad loan for tax purposes : Her friend is now on disability and has made it clear that she has no way of paying back the loan. How should Jezebel treat the bad loan for tax purposes
How much are you willing to pay for one share of this stock : The company has promised to maintain a constant dividend even though economic times are difficult. How much are you willing to pay for one share of this stock
What is the amount of each payment : You are borrowing $28,500 to buy a car. The terms of the loan call for monthly payments for 5 years at 4.5 percent interest. What is the amount of each payment
What is the present value of your winnings : You have just received notification that you have won the $2.5 million first prize in the Georgia Lottery. What is the present value of your winnings
What will be your annual salary twelve years from now : Today, you earn a salary of $54,000. What will be your annual salary twelve years from now if you earn annual raises of 3.4 percent

Reviews

Write a Review

Accounting Basics Questions & Answers

  Why might the sec have instituted the sort of requirement

Manager's often report "pro forma" or "non-GAAP" earnings as supplemental information when reporting their GAAP earnings. What information can a non-GAAP.

  Amount of gain or loss recognition

On the date the stock is sold the market price is 12 a share. What is the basis that Judd must use in computing any gains and losses on the sale and what is the amount of gain or loss he must recognize in 2010?

  Define the involuntary liquidation of lifo

Amount of income resulting from the involuntary liquidation of LIFO

  How much of these losses may kate claim

During the year, kate sold the following assets: business auto for $1,000 loss, how much of these losses may Kate claim? Explain

  Describe an alternative income-statement format that would

alberta gauge company ltd. a small manufacturing company in calgary alberta manufactures three types of electrical

  Why does jim believe the stock is undervalued

Your friend, Jim Kramer, is telling you about a stock that he believes is extremely undervalued. He wants you to invest a large portion of your 401k in it.

  Discuss the investment plans

Suppose that American firms become more optimistic and decide to increase investment expenditure today in new factories and office space.

  Y company manufactures a single product and is trying to

y company manufactures a single product and is trying to estimate its total manufacturing costs each month. it is

  What is a financial option

What is a financial option? What is the single most important characteristic of an option?Consider Triple Play's call option with a $25 strike price.

  How setting detection risk low brings down audit risk

"If inherent and control risk are high, the auditor will set detection risk low, Explain how setting detection risk low brings down audit risk

  Sarbanes-oxley act of 2002 has been described as the most

sarbanes-oxley act of 2002 has been described as the most far-reaching legislation affecting business since the passage

  What are the criteria to label a loss as extraordinary

Patterson Corporation's distribution facility in Iceland was destroyed during the volcanic. What are the criteria to label a loss (or gain) as extraordinary?

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