In October 2017,Jonathon Remodeling Co

question 64

Multiple Choice

In October 2017,Jonathon Remodeling Co. ,an accrual-method taxpayer,remodels and renovates an office building for Dale and bills him $30,000.Dale signs a note for the debt.Dale keeps delaying payment and files bankruptcy in 2018.Creditors are informed that no assets are available for payment.Jonathon Remodeling Co.will report

• A)$0 income in both years.
• B)$30,000 income in 2017 and a bad debt deduction of $30,000 in 2018.
• C)$30,000 income in 2017 and a STCL of $30,000 in 2018 limited to $3,000 after netting.
• D)$30,000 income in 2017 and then must amend last year's return to show $0 income when advised of the bankruptcy.

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Definitions:

Reinforcement

A stimulus that follows a response and increases the frequency of the response.

Evolutionary Forces

Factors that contribute to the changes in gene frequencies within populations through processes such as natural selection, mutation, and genetic drift.

Biological Prepared

Refers to the concept that certain behaviors or physiological responses are innately programmed in organisms to aid in their survival.

Counterconditioning

A fear-reduction technique in which pleasant stimuli are associated with fear-evoking stimuli so that the fear-evoking stimuli lose their aversive qualities.