Pozzi Company, a cash basis business, received $16,930 cash as payment on a loan Pozzi made to a business associate two years ago. The payment consisted of a $15,000 principal payment and $1,930 interest. On receipt of the cash, Pozzi recognizes:

A. $1,930 taxable income.
B. $15,000 taxable income.
C. No taxable income.
D. $16,930 taxable income.


Answer: A

Business

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