Blinder Corporation Was Having Some Cash Flow Problems

question 19

Multiple Choice

Blinder Corporation was having some cash flow problems.One of its creditors agreed to accept $25,000 in payment of a $40,000 debt to help the company out of the jam, even though it is not bankrupt.How does Blinder treat this debt repayment?

• A)Blinder has neither income nor loss
• B)Blinder must recognize $15,000 of income
• C)Blinder must reduce the basis of assets by $15,000
• D)Blinder must reduce tax attributes by $15,000

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Definitions:

Workplan

A detailed outline of tasks, resources, timelines, and goals for a project or business initiative, intended to guide implementation and track progress.

Stock Data

Data showing the status of designated groups in occupational categories and compensation levels.

Designated Groups

Specific categories of people identified for affirmative action or equal opportunity purposes, often based on race, gender, disability, or national origin.

Duty to Accommodate

An obligation by employers to make changes to the workplace or job that will allow employees with disabilities, or other needs, to work effectively.