Albert and Bonnie each own 50% of the stock of Crow, Inc. (a C corporation). To cover what is perceived as temporary working capital needs, each shareholder loans Crow $150,000 with an annual interest rate of 5% (same as the Federal rate) and a maturity date of one year. The loan is made at the beginning of 2011.

Question

Albert and Bonnie each own 50% of the stock of Crow, Inc. (a C corporation). To cover what is perceived as temporary working capital needs, each shareholder loans Crow $150,000 with an annual interest rate of 5% (same as the Federal rate) and a maturity date of one year. The loan is made at the beginning of 2011.
Albert and Bonnie each own 50% of the stock of Crow, Inc. (a C corporation). To cover what is perceived as temporary working capital needs, each shareholder loans Crow $150,000 with an annual interest rate of 5% (same as the Federal rate) and a maturity date of one year. The loan is made at the beginning of 2011.

Quizplus · Accepted Answer

The Answer of Albert and Bonnie each own 50% of the stock of Crow, Inc. (a C corporation). To cover what is perceived as temporary working capital needs, each shareholder loans Crow $150,000 with an annual interest rate of 5% (same as the Federal rate) and a maturity date of one year. The loan is made at the beginning of 2011.

Albert and Bonnie Each Own 50% of the Stock of Crow