DFG Company is 100% owned by Sharon. On January 1 of the current year, DFG...
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Accounting
DFG Company is 100% owned by Sharon.
On January 1 of the current year, DFG makes a loan of $27,000 to Sharon.
The loan carries interest at the rate prescribed within the tax regulations.
Sharon pays $10,800 on the loan on June 30 of the current year, $10,800 on September 30 of the following year, and pays the balance of $5,400 on November 30 of the following year. For the current year, how much of the loan will Sharon recognize in her income?
A. $8,100
B. $16,200
C. $27,000
D. $0
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