A person would take advantage of a non installment credit offer if there was no interest charged on on the loan. Many of these offers will not charge interest on the loans if the loan is paid off in a short amount of time. Usually within 3 to six months of the time the loan is started. These offers are usually for appliances and furniture. You can always ask the store you are visiting if they have these offers available. If you don't pay the loan off within the amount of time, you are then charged the interest and have a longer amount of time to pay the loan off.
Answer: Alano's taxable income increases by $300,000.
Explanation:
Constructive dividends are paid to a shareholder and classified in such a way that they are not to be seen as taxable dividends.
If during auditing however, the IRS determines that it was indeed a taxable dividend, it becomes a constructive dividend.
Constructive dividends are taxable by definition so Alano's taxable income increases by the amount of dividend of $300,000.
