Constance,who Is Single,lives in an Area That Suffered a Major

question 32

Multiple Choice

Constance,who is single,lives in an area that suffered a major hurricane in 2019 which was declared a federal disaster.Her car sustained $6,200 in damages.Constance does not expect to recover any of the loss from her insurance company.Constance's 2019 AGI is $31,000.Her casualty loss is $3,000; she has other itemized deductions of $5,200.In 2020,Constance's insurance company reimburses her $2,800.Constance's 2020 AGI is $28,000.As a result,Constance must

• A)amend the 2019 return to show the $200 loss.
• B)do nothing and simply keep the $2,800.
• C)amend the 2019 return to show $0 loss and file her 2020 return to show $200 loss.
• D)do nothing to the 2019 return but report $2,800 of income on her 2020 return.

Learn about the specific legal protections and strategies corporations can employ against unwanted takeovers.

Distinguish between the various outcomes of restructuring strategies on corporate identity and legal status.

Acknowledge the ethical considerations and potential negative consequences of corporate restructuring tactics.

Understand the legal procedures and requirements for corporate dissolution and liquidation.

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Definitions:

Market Price

Market price is the current price at which an asset or service can be bought or sold in the open market.

Net Profit Margin

A financial metric that measures the percentage of profit a company earns from its total revenue, indicating efficiency and profitability.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial position.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specified period.