Research Problem 1. During 2016, John was the chief executive officer and a share- holder of Maze, Inc. He owned 60% of the outstanding stock of Maze. In 2013, John and Maze, as co-borrowers, obtained a $100,000 loan from United National Bank. This loan was secured by Johns personal residence. Although Maze was listed as a co-borrower, John repaid the loan in full in 2016. On Mazes Form 1120 tax returns, no loans from shareholders were reported. Discuss whether John is entitled to a bad debt deduction for the amount of the payment on the loan.

the above problem is the subject of the below assignment given by my teacher. can anyone help?

Using Research Problem 1 found on page 7-30 in the textbook, prepare a memo to the tax files to address the possibility of a bad debt deduction