The debt business or non-business bad debt

Assignment Help Financial Management

Reference no: EM131353192

Several years ago, R’s son, S, got into the restaurant business. R loaned S $10,000 to help him get the business going. No note was signed nor was any interest charged. The business was initially a huge success but as time passed, it began having financial problems. This year the son’s business failed.

Can R claim a bad debt deduction? If so, is the debt a business or non-business bad debt and how much is the deduction?

Same as (a) except R obtained a signed note from his son.

Reference no: EM131353192

Questions Cloud

Wave to travel the path apb : Show by the method of Lagrangian multipliers that the time for the wave to travel the path APB is a minimum when w/w' = sin Φ /sin Φ'.

Prepare a memo to management regarding the security breach : Prepare a memo to management regarding the security breach (approximately 2 pages). Your memo should: Assess and explain the expected plan of action of how the security breaches should be investigated.

Choose a recent outbreak or other public health emergency : Choose a recent (within the last 3 years) outbreak or other public health emergency situation that has drawn significant media attention. Describe how specific aspects of the public health infrastructure contributed to either the emergency situat..

Briefly summarize the story literacy narrative tells : Briefly summarize the story this literacy narrative tells and identify the purpose of the narrative. What point is the writer trying to prove through telling his/her story?

The debt business or non-business bad debt : Several years ago, R’s son, S, got into the restaurant business. R loaned S $10,000 to help him get the business going. No note was signed nor was any interest charged. The business was initially a huge success but as time passed, it began having fin..

Discuss the issues and concerns of gender and globalization : Choose a topic of interest that we have discussed in class or that directly relates to class conversations and readings. For this paper, your research skills will come in to play, because you are asked to incorporate three new sources outside of c..

Show by the method of lagrangian multipliers : If the final temperature of the metal is Tf and that of the liquid is Tj, then show by the method of Lagrangian multipliers that the condition for the entropy change of the universe to be a maximum is that Tf = Tj.

Differentiate between ectoderm-mesoderm : Differentiate between ectoderm, mesoderm and endoderm and list what tissues arise from each?

Uses profitability index when evaluating projects : Gold mining, inc uses the profitability index when evaluating projects. gold mining's cost of capital is 11.77 percent. what is the PI of a project if the initial costs are $2320888 and the project life is estimated as 10 years? the project will prod..

User Account

All Pages