In October 2018, Jonathon Remodeling Co

question 1805

Multiple Choice

In October 2018, Jonathon Remodeling Co., an accrual- method taxpayer, remodels and renovates an office building for Dale and bills him $30,000. Dale signs a note for the debt. Dale keeps delaying payment and files bankruptcy in 2019. Creditors are informed that no assets are available for payment. Jonathon Remodeling Co. will report

• A) $30,000 income in 2018 and a bad debt deduction of $30,000 in 2019.
• B) $30,000 income in 2018 and then must amend last year's return to show $0 income when advised of the bankruptcy.
• C) $30,000 income in 2018 and a STCL of $30,000 in 2019 limited to $3,000 after netting.
• D) $0 income in both years.

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Definitions:

Cognitive Development Theory

A theory in psychology that explains how children acquire the ability to learn, think, reason, communicate, and remember over time.

Male Values

Societal norms, behaviors, and expectations traditionally deemed masculine, often emphasizing strength, independence, and competitiveness.

Female

Pertaining to the sex that is typically associated with the production of ova (eggs) and has characteristically XX chromosomes in mammals.

Tolerate Abuse

Refers to enduring or accepting harmful, violent, or demeaning behavior, often within interpersonal relationships.