In 2017, Grace loaned her friend Paula $12,000 to invest in various stocks. Paula signed a note to repay the principal with interest. Unfortunately the market for that industry sector plunged, and Paula incurred large losses. In 2018, Paula declared personal bankruptcy and Grace was unable to collect any of her loan. Grace had no other gains or losses last year or this year. The result is
A. Grace deducts a $12,000 nonbusiness bad debt as a short-term capital loss in 2018.
B. Grace deducts a business bad debt of $3,000 in 2018 and carries $9,000 over to subsequent years.
C. Grace deducts a business bad debt of $12,000 in 2018.
D. Grace deducts a $3,000 nonbusiness bad debt as a short-term capital loss in 2018 and carries $9,000 over to subsequent years.
Answer: D
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Portia is meeting with her subordinates to determine which workers from her department need training in order to handle production increases expected during the next nine months. Portia is involved in
A. vision development. B. operational planning. C. controlling. D. tactical planning. E. developing an MBO.
For firms that are able to raise funds through the sale of commercial paper, it is generally cheaper than borrowing from a commercial bank
Indicate whether the statement is true or false
Jessica was a former employee of Mark. When potential employers called Mark for a reference about Jessica, he stated she was not a very good worker and had been fired for excessive absences. He said he had reason to believe Jessica was on drugs, but he wasn't absolutely certain. Jessica learned what Mark was saying and sued him. In most states A) under the qualified privilege rule, it was legal
for Mark to say what he said if it was true and Mark was not motivated by ill will. B) it was legal for Mark to say what he said, since courts have consistently ruled that former employers are immune from lawsuits for giving references. C) it was not proper for Mark to say what he said, since courts have consistently ruled that former employers should not give references over the telephone or in writing without the former employee's written authorization. D) though it was proper for Mark to talk about Jessica's work-related history, he should have refrained from talking about her potential drug use.
Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.
Answer the following statement true (T) or false (F)