Interest is defined as the amount paid regularly at an agreed rate for the use of money lent. Depending on the agreement of both parties, interest is for the delayed repayment of a debt. So, to answer the question above: True.
Answer:
$20,000
Explanation:
The computation of the taxable gain is shown below:
The corporate gain is
= $40,000 - $20,000
= $20,000
Now the stock basis is increased i.e.
= $20,000 + $20,000
= $40.000
Now the stock basis decreased to zero i.e.
= $40,000 - $40,000
= $0
So, here the taxable gain is of $20,000
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