What is the effect of the pledge rule? a. the seller is subject to double taxation....

What is the effect of the pledge rule? a. the seller is subject to double taxation. b, the recognition of gain is accelerated .c. the OID interest rate rule applies d. The unstated interest rate rule applies

Expert Solution

If there can be two options than choose Option c and Option d both because if section 483 applies to the contract, this interest is called unstated interest. If section 1274 applies to the contract, this interest is called OID. However if there can only be one option than choose Option c becuase generally, if a buyer gives a debt in consideration for personal-use property, the unstated interest rules don’t apply.

ekkarill92 answered 1 year ago

what is the effect of the pledge rule?

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What is the effect of the pledge rule? a. the seller is subject to double taxation....

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what is the effect of the pledge rule?

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