James is in the business of debt collection. He purchased a $20,000 account receivable from Green Corporation for $15,000. During the year, he collected $17,000 in final settlement of the account. James can take a $2,000 bad debt deduction in the current year.
Answer the following statement true (T) or false (F)
False
Rationale: James has a basis of $15,000 in the account receivable; hence, he has income of $2,000.
You might also like to view...
Comments that are written in a conversational tone use the pronoun
a. I b. We c. Us d. You
Direct marketing lets an advertiser
A. create a desirable mood in consumers. B. market its products in a cost-efficient manner. C. build a credible image about a company's product by using direct mails. D. make accurate mailing lists consistently for targeting potential customers. E. reach a large number of people and reduce or eliminate waste coverage.
Convert 80 ounces to grams
a. 800 g b. 2.82 g c. 2,268 g d. 51.65 g
A(n) ________ committee is a group of senior managers from the major business functions that works with the chief information officer to set information systems (IS) priorities and decide major IS projects and alternatives
A) enforcement B) disciplinary C) administrative D) steering