In 2014 Betty Loaned Her Son,Juan,$10,000 to Help Him Buy

question 33

Multiple Choice

In 2014 Betty loaned her son,Juan,$10,000 to help him buy a car.In 2015,before he repaid the $10,000,Betty told Juan that she was "tearing up" the $10,000 note as a graduation present.How should Juan treat the amount forgiven?

• A)taxable income in year of loan
• B)taxable income in year of forgiveness
• C)excludable gift in year of loan
• D)excludable gift in year of forgiveness

Recognize how different transactions affect the recording of gains or losses on assets.

Understand the process for recording the disposal of fixed assets including the role of accumulated depreciation.

Distinguish between the accounting treatment of tangible and intangible assets, including amortization and research and development costs.

Identify the characteristics of fixed assets and understand how they are used within operations.

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Definitions:

Determined

Having a strong resolve or firmness of purpose.

Heroin

is an illegal opioid drug derived from morphine, highly addictive, and known for its euphoric effects.

Widely Used

Refers to something that is employed or adopted on a large scale across various regions or groups.

Drug

is a substance that alters the body's physiology or psychology when consumed. Drugs can be legal (prescription medications) or illegal (substances banned by law).