Trial Corporation is experiencing financial difficulties. One of its major customers, Jury Corporation, is concerned that if
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Trial Corporation is experiencing financial difficulties. One of its major customers, Jury Corporation, is concerned that if Trial is unable to continue in business, Jury's supply chain will be disrupted. In 2020, Jury makes a loan of $1 million to Trial. In 2021, Trial is unable to pay the loan. In December 1, 2021, Jury forgives the $1 million loan. A. What are the tax consequences to Trial Corporation? B. What are the tax consequences to Jury Corporation?
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Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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