Connor Owes $4 Million and Has Assets of Only $1

question 66

Multiple Choice

Connor owes $4 million and has assets of only $1 million.He declares and files personal and business bankruptcy and his creditors approve a payment plan of $.25 per dollar.Connor has a net operating loss carryover of $2 million.The remaining 75 percent of his debt will be canceled.Connor must recognize income of

• A)$0.
• B)$1 million.
• C)$2 million.
• D)$3 million.

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Definitions:

UCC

A broad spectrum of laws that oversee every commercial transaction in the United States is encapsulated within the Uniform Commercial Code (UCC).

Industry Standards

Established norms and guidelines within a particular industry that are widely accepted and followed by businesses and professionals within that field.

Small Claims Court

A court specializing in resolving smaller legal disputes involving limited monetary amounts, typically in a simpler, faster process.

Admit

To confess or acknowledge truth or facts, often pertaining to legal or formal settings.