Shareholder loans $150,000 to his controlled corporation not evidenced by a note. a. b. c. d. e. f. Does the shareholder report interest income (Yes/No) _______________ What Code Section §_______________ What if anything does Corp. X report (2-3 words) _______________________________ How is interest computed (4 – 10 Words) ______________________________________ Code Section for Part d above §_______________ What is the name for this type of debt _________________

Q: None

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is