Answer: $25,000
Explanation:
Amount borrowed = $25,000
Corporation interest = 3%($25,000)
= 3/100 × $25,000
= $750
Federal rate = 4%($25,000)
= 4/100 × $25,000
= $1,000
Total debt = $(25,000+750+1,000)
= $26,750
Jody earned $3,500 for the year. In six months, Jody'd earn 1/2 of $3,500 = $1,750
This means that $1,750 of Jody's income will go to Jody's controlled corporation account in six month.
The total inputed amount to be paid by Jody = Jody's total debt - Jody's income in six month
= $26,750 - $1,750
=$25,000
