Lana Long, age 32, chief executive officer of News America borrows $100,000 from her employer as a bridge loan. Assume that the applicable federal rate for year one of the loan is 6 per cent, but that American only charges 2 percent. What are the likely tax consequences for Lana? Explain.

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In the scenario youve described where Lana Long the CEO of News America borrows 100000 from her empl... View the full answer