Henry Hoover Operates a Freight Line Which Delivers a Substantial

question 28

Multiple Choice

Henry Hoover operates a freight line which delivers a substantial number of boats made by Walter Company. During 2012, Henry made a loan of $45,000 to Walter Company in order to maintain their business. Walter Company went bankrupt in 2012 and did not repay Henry's loan. Henry is entitled to which of the following in 2012?

• A) $0 loss
• B) $3,000 short-term capital loss
• C) $27,000 long-term capital loss
• D) $45,000 ordinary loss
• E) $45,000 short-term capital loss

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Definitions:

Experienced Managers

Individuals with significant expertise and knowledge in managing operations, teams, and making strategic decisions.

Logical Reasoning

The process of using a rational, systematic series of steps based on sound mathematical procedures and given statements to arrive at a conclusion.

What-if Questions

What-if questions are hypothetical queries used for exploring different scenarios, possibilities, or outcomes, often in problem-solving, planning, or speculative thinking.

Creativity

The ability to produce original and valuable ideas or solutions by thinking beyond existing boundaries and conventions.