An accrual basis taxpayer accepts a note receivable from a retail customer with a weak credit rating. The taxpayer immediately sells the note to a bank for less than the note's stated value. The taxpayer has an ordinary loss.
Answer the following statement true (T) or false (F)
True
Rationale: Since the note receivable was received in the normal course of the taxpayer's business from the sale of inventory, it is not a capital asset. The loss from the disposition of the note is an ordinary loss.
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Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Corporation has provided the following estimated costs for next year: Direct materials$20,000Direct labor$60,000Sales commissions$80,000Salary of production supervisor$40,000Indirect materials$8,000Advertising expense$16,000Rent on factory equipment$20,000 Steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:
A. $4.25 B. $10.25 C. $8.00 D. $9.00
Which data warehouse architecture uses a normalized relational warehouse that feeds multiple data marts?
A) independent data marts architecture B) centralized data warehouse architecture C) hub-and-spoke data warehouse architecture D) federated architecture
When managers organize divisions based solely on the type of customer they focus on, they adopt a ________ structure.
A. market B. geographic C. product D. functional E. product team
Identify which of the following statements is true.
A) When adjusting a partner's basis in a partnership interest, the negative basis adjustments are made prior to the positive basis adjustments. B) Martin and Carlos formed an equal partnership to which Martin contributed $10,000 cash and Carlos contributed a building worth $10,000 with a basis of $2,000. In the first year of operation, the partnership suffered a $10,000 ordinary loss. Martin and Carlos can each deduct a $5,000 loss on their personal tax returns. C) Any distributive share of a loss that cannot be deducted by a partner because of the Sec. 704(d) basis loss limitation is permanently lost. D) All of the above are false.