Peggy Is in the Business of Factoring Accounts Receivable

question 105

Multiple Choice

Peggy is in the business of factoring accounts receivable.Last year, she purchased a $30,000 account receivable for $25,000.This year, the account was settled for $25,000.How much loss can Peggy deduct and in which year?

• A)$5,000 for the current year.
• B)$5,000 for the prior year and $5,000 for the current year.
• C)$5,000 for the prior year.
• D)$10,000 for the current year.
• E)None of these.

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Definitions:

Purpose

In criminal law, the intent to cause the result that does, in fact, occur.

Knowledge

In criminal law, the awareness that a particular result will probably occur.

Battery

The unlawful physical acting upon a threat, characterized by the use of force against another, resulting in harmful or offensive contact.

Aggravated Menacing

is a criminal offense that involves threatening harm to another individual with the intent to cause fear or harm, in a manner more severe than simple menacing.