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Michael is the president of the T Corporation. He and other members of his family control the corporation. Michael has a temporary need for $45,000, and the corporation has excess cash. He could borrow the money from a bank at 9%, and T Corporation is earning 6% on its temporary investments. The federal published lending rate is 8%. T Corporation has made loans to other employees on several occasions. Therefore, Michael is considering borrowing $45,000 from the corporation. He will repay the loan principal in two years plus interest at 5%. Is the corporation required to impute interest income on the loan to Michael
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Michael is the president of the T Corporation. He and other members of his family control the corpor...
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