Mark and His Brother,Rick,each Own Farms

question 27

Multiple Choice

Mark and his brother,Rick,each own farms.Rick is experiencing severe financial difficulties and cannot afford to buy feed for his cattle.Mark purchases $2,000 of feed and gives Rick one-half of the feed.Mark tells Rick that there is no need to repay him and to consider the feed a gift.Which of the following statements is true?

• A)Mark can deduct $2,000 for the feed.
• B)Mark can deduct $1,000 for the feed.
• C)Rick must report $1,000 as income.
• D)None of the above is true.

Recognize the roles and responsibilities of an employment equity representative.

Know the first step in creating a workplan for employment equity.

Understand the principle of the duty to accommodate within organizations.

Identify the legal sources of the employer's duty to prevent sexual harassment.

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Definitions:

Unearned Fees

Income received by a business for services that have not yet been performed or delivered.

Fees Earned

Revenue generated from providing services to clients or customers.

Fees Payable

Liabilities owed for services rendered by a third party, such as professional consulting or management services, that have not yet been paid.

Balance Sheet

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