On December 1,Robert,a Cash-Method Taxpayer,borrows $10,000 from the Bank for Use

question 24

Multiple Choice

On December 1,Robert,a cash-method taxpayer,borrows $10,000 from the bank for use in his business.Under the terms of the loan,the bank discounts the loan by $300,paying Robert the $9,700 cash proceeds.If Robert repays the loan next year,he may deduct

• A)$300 next year.
• B)$300 this year.
• C)$25 this year and $275 next year.
• D)nothing since the note is "noninterest-bearing."

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Definitions:

Outsourced

The act of hiring external organizations or individuals to perform tasks, handle operations, or provide services that are either difficult to manage or are outside of the business's core competencies.

Sustainable Business

An enterprise that operates in a way that preserves or enhances economic opportunity, environmental health, and social equity for current and future generations.

Well-being

A state of comfort, health, or happiness.

Natural Environment

The physical, chemical, and biological systems and resources that exist independently of human actions.