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What would be the lafayette has dividend income

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Reference no: EM131805809

Deerwood Corporation lends its principal shareholder, Lafayette, $886,600 on July 1 of the current year. The loan is interest-free and payable on demand. On December 31, the imputed interest rules are applied. Assume that the Federal rate is 10%, compounded semiannually.

As a result, Lafayette has dividend income of $?

Reference no: EM131805809

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