On May 18 of last year, Carter sells unlisted stock with a cost of $24,000 for $60,000. Carter collects $20,000 initially and is scheduled to receive $10,000 each year for four years starting this year plus an acceptable rate of interest. After receiving the first $10,000 scheduled installment payment, Carter is unable to collect any further payments. After incurring legal fees of $1,000, Carter recovers a portion of the stock valued at $26,000. As a result of the repossession, Carter must report
A. ordinary income of $13,000.
B. ordinary income of $9,000.
C. capital gain of $9,000.
D. capital gain of $13,000.
Answer: D
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An alternative to being a follower in a large market is to be a leader in a small market
Indicate whether the statement is true or false
At the beginning of the quarter, Marcus sat down with his manager and set three goals for the next three months. The achievement of each goal will depend on Marcus. No one else in his work group can affect the work toward the goal. Which advantage of individual incentives does this illustrate?
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Which of the following statements associated with traditional overhead allocation is true?
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