Splashy Fish Store Allows Qualified Customers to Purchase Items on Credit.During

question 110

Multiple Choice

Splashy Fish Store allows qualified customers to purchase items on credit.During the current year, Lisa, the owner of the store, determines that $3,500 of accounts receivable are not collectible.Which of the following statements is true with respect to Splashy Fish Store's deduction for the uncollectible accounts receivable?

• A)Splashy is not allowed a deduction for the uncollectible accounts if the income arising from the accounts has not been previously included in taxable income.
• B)Any deduction for the uncollectible accounts receivable will be treated as a short-term capital loss.
• C)Only $3,000 of the uncollectible accounts receivable may be deducted in the current year.
• D)All of the above statements are true.
• E)Two of the above statements are true.

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Definitions:

Ancestry

The lineage or genealogical descent of an individual, often influencing cultural or familial identity.

Equal Opportunity

Policies and practices that ensure all individuals have the same chances to apply and be selected for jobs, irrespective of their background or demographic characteristics.

Civil Rights Act

A landmark piece of legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin, notably implemented through Title VII for employment discrimination.

Equal Employment

A principle of non-discrimination in hiring, promoting, and compensating employees, regardless of race, religion, gender, age, or disability.