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Rachel Paid $1,000 for Supplies in 2013

question 53

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Rachel paid $1,000 for supplies in 2013. In 2014, the vendor finds a $200 mistake on the invoice and refunds the overpayment to Rachel. Which of the following doctrines or concepts is the least helpful in determining how the 2014 transaction should be reported for tax purposes?


Definitions:

State-Owned Enterprise

An organization that is owned, controlled, and operated by a government entity.

Political Unrest

A state of disagreement or conflict within a country due to differing opinions on governance, policy, or leadership.

Risk Insurance

A financial product that provides a safeguard against potential losses or damages, transferring the risk from an individual or entity to an insurance provider.

Deregulating

The reduction or elimination of government power in a particular industry, usually to create more competition and increase efficiency.

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