How much of the interest can robin corporation deduct, Accounting Basics

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How much of the interest can robin corporation deduct

Ron and Tom are equal owners in Robin Corporation. On July 1, 2011, each lends the corporation $30,000 at an annual interest rate of 10%. Ron and Tom are brothers. Both shareholders are on the cash methods of accounting, and Robin Corporation is on the accrual method. All parties use the calendar year for tax purposes. On June 30, 2012, Robin repays the loans of $60,000 together with the specified interest of $6,000.

a. How much of the interest can Robin Corporation deduct in 2011? In 2012?

b. When is the interest included in Ron and Tom's gross income?

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Accounting Basics: How much of the interest can robin corporation deduct

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Accounting Basics: How much of the interest can robin corporation deduct

Reference No:- TGS0705018

Recent Questions Asked Accounting Basics

Q : Consider the direct materials price variance

Q : Upton is a sole proprietorship

Q : What is frans deduction associated with the activity

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Q : How much of the interest can robin corporation deduct

Q : What dollar amount did kemper receive

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Q : How much cash does the company expect to collect in may

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