According to the case information provided, the tax calculation should be prepared on a cash basis. This means that you would consider only the net income actually received( realized using cash basis accounting vs recognized using accrual based accounting) . The company received the interest repayments and origination fees from loans 602 and 603 that were paid off in year 7. The expenses actually paid to depositors would exceed the interest and origination fees received resulting in a loss using cash basis accounting so no taxes would be due