Question: What difference does it make when the sole shareholder of a corporation provides $10,000 of additional capital to the corporation as a loan (shareholders loan),

What difference does it make when the sole shareholder of a provides $10,000 of additional capital to the as a loan (shareholder’s loan), rather than in return for additional share capital?

Step by Step Solution

★★★★★

3.39 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

In both circumstances the owner provides the same amount of capital to the corporation However ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

691-L-B-L-I-T-E (741).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

What is a relevant market? What difference does it make when determining peoples pay?

What difference does it make whether a strike is an economic strike or a ULP strike?

What difference does it make whether the policy is a security or not?

Identify what you found interesting about the below articles and give an example of how you would apply what you learned to a new client you just acquired that is opening a new business and wants to...

Question MC 1 (43 minutes) [Chapters 2 to 8] Determine the single most appropriate response to the following questions. 1)Carla lives in Detroit, Michigan, USA. She commutes daily to Windsor,...

Question I would like you to make an effort to calculate the WACC for Marriott overall which requires following a couple of steps: First, we need to unlever Marriott's Equity Beta with the actual...

Fill out the green part! thank you! Preliminary Financial Data EBIT EPS/EBIT Data Recession $8,842 Company Valuation Amounted Needed Interest Rate Tax Rate Shares Outstanding #New Shares Outstanding...

Prepare a complete year 2016 federal corporate tax return for Acme Corporation. Prepare a complete year 2016 federal corporate tax return for Acme Corporation. Balance Sheet Cash Investments Accounts...

1. List the four basic adjustments that a corporation makes to taxable income or net loss to compute current E&P. What is the rationale for making these adjustments? 2.A my is the sole shareholder of...

what is your overall evaluation of PepsiCo?s business portfolio in 2014? Does the portfolio provide the company?s shareholders with an opportunity for above-average market returns? 5 PEPSICO PepsiCo...

4 5 6 8 9 10 11 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Instructions: Prepare a multiple step income statement for Medlink Company for the year ended December 31, 2020, using the...

ISBN 9781119333418 A librarian at the Department of Finance, Operations, and Information Systems (FOIS) in the Goodman School of Business would like to create a database that would hold the data of...

A corporation issues $ 1 , 0 0 0 , 0 0 0 of 8 % , 5 - year bonds when bonds of similar risk are paying 7 . 5 % . The 7 . 5 % rate of interest is called the _ _ _ _ _ _ _ _ _ _ rate. Group of answer...

Explain which groups in an economy most favor restricting foreign investment. Which groups should oppose restrictions?

Kenisha and Shawna form the equal KS LLC with a cash contribution of $360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair market value of $360,000) from Shawna. a. How...

Which of the following is true of effecient-market hypothesis? A. Since stocks are fully and fairly priced, it follows that investors should not wast their time trying to find and capitalize on...

S \& C Company issues 2,000 shares of its no - par common stock. The issue price of the stock is $19.00 per share. What is the journal entry required to record the issuance of the shares

please dont answer it on excel and provide the formulas if needed Values Values Accounts Payable & Accruals $300 Short-term notes $150 $150 Long-term debt $450 S600 Preferred Stock $75 SIS Common...