Purchase Solution

Reporting 2008 Tax Return

Not what you're looking for?

Ask Custom Question

The question is as follows:

Celeste had one of her best employees leaving town to get away from a troublesome ex husband. In order for her friend to establish a business elsewhere, in March 2007 Celeste loaned her $7,000 on a 6% note to be paid back in one year. On December 30, 2008 Celeste found out that her employee had filed for bankruptcy and was awaiting trial on felony theft charges. Celeste has never received any interest on the loan.

How would Celeste would report this on her 2008 Tax return.

Purchase this Solution

Solution Summary

The solution determines how Celeste will report her 2008 tax return.

Solution Preview

Given than Celeste has recorded an interest income in her 2007 tax return, she is not related to her employee, the debt is payable February 28, 2009, the loan is not guaranteed by a third ...

Purchase this Solution


Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Introduction to Finance

This quiz test introductory finance topics.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.