Question: Benny loaned $ 1 0 0 , 0 0 0 to his controlled corporation. When it became apparent that the corporation would not be able

Benny loaned $

100, 000

to his controlled corporation. When it became apparent that the corporation would not be able to repay the loan in the near future, Benny canceled the debt.

The corporation should treat the cancellation as a nontaxable contribution to capital.

True

False

Benny loaned $100,000 to his controlled corporation. When it became apparent

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