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Calculate (A)amount to Be Credited and (B)balance Outstanding

question 136

Short Answer

Calculate (A)amount to be credited and (B)balance outstanding:
 Invoice  Payment  Amount to be  Balance  Amount  Terms  Invoice Date  Amount  Date Paid  credited  Outstanding $3,0002/10,n/30 July 5th $600 July 14th  (A)  (B) \begin{array} { | l | l | l | l | l | l | l | } \hline \text { Invoice } & & & \text { Payment } & & \text { Amount to be } & \text { Balance } \\\text { Amount } & \text { Terms } & \text { Invoice Date } & \text { Amount } & \text { Date Paid } & \text { credited } & \text { Outstanding } \\\hline \$ 3,000 & 2 / 10 , \mathrm { n } / 30 & \text { July 5th } & \$ 600 & \text { July 14th } & \text { (A) } & \text { (B) } \\\hline\end{array}

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Definitions:

Short-term Capital Loss

A loss realized from the sale or exchange of a capital asset held for one year or less.

Long-term Capital Gain

Profit from the sale of an asset held for more than one year, typically taxed at a lower rate than regular income.

Section 1245

A section of the tax code that involves recapturing depreciation on certain types of property as ordinary income upon sale.

Section 1231 Gain

A gain from the sale or exchange of property used in a business, subject to favorable tax treatment under Section 1231 of the U.S. tax code.

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