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There Are Significant Attributes in the Tax Treatment of Shareholder

Question 3

Essay

There are significant attributes in the tax treatment of shareholder debt and shareholder equity from the perspective of both the CCPC and the shareholders.
Required:
List one tax consequences for each of the following:
1) Return on investment - shareholder debt
2) Loss on investment - shareholder debt
3) Return of capital - shareholder debt
4) Return on investment - shareholder equity
5) Loss on investment - shareholder equity
6) Return of capital - shareholder equity

Correct Answer:

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