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.

---

Definitions:

Status Quo

The existing state of affairs or conditions, often used in context to suggest a resistance to change.

Refreezing

The process of stabilizing a group or organization after a change has been implemented, ensuring the new state becomes the norm.

Lewin's Basic Change Model

A three-step model (unfreezing, changing, refreezing) for implementing change within an organization, proposed by Kurt Lewin.

Reward Systems

Mechanisms or programs implemented by organizations to recognize and reward employees' performance and achievements.