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:

Caudal

Pertaining to the tail or posterior part of the body, often used to describe direction in anatomy.

Proximal

Situated nearer to the center of the body or the point of attachment.

Inguinal Region

The area of the lower abdomen, located just above the groin, where the thighs meet the torso.

Groin

The area where the abdomen ends and the legs begin, often referring to the fold or crease between the thigh and abdomen.