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) D...

Here the loan basis is only back ...

Assume the same facts as in Problem 26, except that Jeff's share of corporate tax able income

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 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.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...