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PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4104
Experience:  Tax professional and business consultant for 35 years.
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We have a loan to a company that needs to be written off as

Customer Question

We have a loan to a company that needs to be written off as the company (a subsidiary of ours) has been liquidated.
How do I display this on our balance sheet & Profit & Loss?
Submitted: 1 year ago.
Category: Finance
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax, and can assist.

Expert:  PDtax replied 1 year ago.

You book a bad debt expense and credit the loan receivable. Your balance sheet will reflect no loan balance, and income statement will report the expense.

Expert:  PDtax replied 1 year ago.

Intercompany loans, tax effects, can be considered later. Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.

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