Swan Finance Company, an Accrual Method Taxpayer, Requires All of Its

question 51

Multiple Choice

Swan Finance Company, an accrual method taxpayer, requires all of its customers to carry credit life insurance.If a customer dies, the company receives from the insurance company the balance due on the customer's loan.Ali, a customer, died owing Swan $1,500.The balance due included $200 accrued interest that Swan has included in income.When Swan collects $1,500 from the insurance company, Swan:

• A)Must recognize $1,500 income from the life insurance proceeds.
• B)Must recognize $1,300 income from the life insurance proceeds.
• C)Does not recognize income because life insurance proceeds are tax-exempt.
• D)Does not recognize income from the life insurance because the entire amount is a recovery of capital.
• E)None of these.

Identify the functions and characteristics of the central nervous system's main divisions.

Describe the neurophysiological mechanisms involved in long-term memory.

Explain the role of the nervous system in the evolutionary development of bilaterially symmetrical animals.

Recognize the neuroanatomical locations and functions within the brain.

---

Definitions:

Ethics

A branch of philosophy dealing with moral principles and values governing individual and group behavior.

Good

An item or product that is manufactured or produced for sale, or anything that serves a need or desire.

Right

A moral or legal entitlement to have or obtain something or to act in a certain way.

Central Authority

The main governing body or agency in a political or administrative system responsible for overseeing implementation of certain rules or policies.