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Barry owns 23% of the issued and outstanding shares of Hawn Inc., a corporation with a...

Barry owns 23% of the issued and outstanding shares of Hawn Inc., a corporation with a November 30 year end. On December 31, 20X7, he borrows $100,000 from the company on an interest-free basis with no repayment terms. What is the latest date that the loan must be repaid in order for Barry to avoid having to add it to his income? a) November 30, 20X8

b) December 31, 20X8

c) November 30, 20X9

d) December 31, 20X9

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Answer #1

It must be paid within a year or within the financial year end whichever is earlier.

hence, it should be paid by  a) November 30, 20X8

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