What amount of gross income does zach recognize

Assignment Help Accounting Basics

Reference no: EM132088958

Question: Zach is an executive with ROYAL Tires. At the beginning of this year the corporation loaned Zach $50,000 at an interest rate of one percent. Zach would have paid interest of $2,500 this year if the interest rate on the loan had been set at the prevailing Federal interest rate. Zach used the funds as a down payment on a vacation home and during the year he paid $500 of interest to ROYAL. On December 31, ROYAL forgave the loan and remaining interest. What amount of gross income does Zach recognize from the loan this year? Please site or support answer with either section, paragraph of Internal Revenue Code,or Publication 17 or Treasury Regulation.

Reference no: EM132088958

Questions Cloud

Identify the platform that ial chose as an online portal : Identify the platform that IAL chose as an online portal and content management system, and describe the main reason(s) why IAL chose.

Calculate the total future compound amount : A young graduate engineer wants to know the future value accumulated if she invests a uniform series amount equal to the IRS annual limit of $5,500 per year.

Describe and discuss at least two backup strategies : Describe and discuss at least two backup strategies. Discuss the use of cloud backup strategies, as well?

Determine the amount of dividends paid each year : York's outstanding stock consists of (a) 38,000 shares of noncumulative 8.5% preferred stock with a $5 par value and (b) 95,000 shares of common stock.

What amount of gross income does zach recognize : Zach is an executive with ROYAL Tires. At the beginning of this year the corporation loaned Zach $50,000 at an interest rate of one percent.

Calculate the amount of money : A young man has just been employed by a government agency. He has a good job security and expects consistent 5% annual salary increases.

What are some of the project risks management techniques : The knowledge concerning the risk management is becoming a matter of importance to successfully tackle the complexity of projects.

What would be weighted-average contribution margin per tin : Yumminess has asked Jordon and Taylor to consider making Extra Attack Brownies and Nutty Attack Brownies, in addition to Chocolate Attack Brownies.

Calculated the liability that yummy rice should report : Yummy rice offer an all start bowl in exchange for 4 coupons. Yummy rice estimates thar 25% of coupons will be redeemed. The bowl cosy Yummy rice $1.40 each.

User Account

All Pages