Assume the same facts as in Problem 26, except that Jeff 's share of corporate tax able income is only $8,000 and there is no cash distribution The corporation repays the $10,000 loan principal to Jeff Discuss the tax effects Assume that there was no corporate note (i e , only an account payable) Does this change your answer Explain

Question: Assume the same facts as in Problem 26, except that Jeff's share of corporate tax able income is only $8,000 and there is no cash

Assume the same facts as in Problem 26, except that Jeff's share of corporate tax able income is only $8,000 and there is no cash distribution. The repays the $10,000 loan principal to Jeff. Discuss the tax effects. Assume that there was no corporate note (i.e., only an account payable). Does this change your answer? Explain.

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