Pay a gambling debt


Billy's father owns a controlling interest in Big Top Corporation. Billy needed $20,000 to pay a gambling debt and the corporation made a loan to Billy at no interest for the $20,000. This transaction can be characterized as:

a. A gift loan to Billy

b. An employment-related loan

c. An arm's length loan

d. A disguised dividend to the father

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Accounting Basics: Pay a gambling debt
Reference No:- TGS065890

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