The Robin Corporation is owned as follows: Isabelle ................................................ 26% Peter, Isabelle's husband ........................... 19% Sonya, Isabelle's

Question:

The Robin is owned as follows:
Isabelle ................................................ 26%
Peter, Isabelle's husband ........................... 19%
Sonya, Isabelle's mother ........................... 15%
Reggie, Isabelle's father ........................... 25%
Quinn, an unrelated party .......................... 15%
Robin is on the accrual basis, and Isabelle and Peter are on the cash basis. Isabelle and Peter each loaned the Robin $40,000 out of their separate funds. On December 31, 2015, Robin accrued interest at 7% on both loans. The interest was paid on February 4, 2016. What is the tax treatment of this interest expense/income to Isabelle, Peter, and Robin?
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...