In 2015 Betty Loaned Her Son,Juan,$10,000 to Help Him Buy

question 51

Multiple Choice

In 2015 Betty loaned her son,Juan,$10,000 to help him buy a car.In 2017,before he repaid the $10,000,Betty told Juan that she was "tearing up" the $10,000 note as a graduation present.How should Juan treat the amount forgiven?

• A)taxable income in year of loan
• B)taxable income in year of forgiveness
• C)excludible gift in year of loan
• D)excludible gift in year of forgiveness

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Definitions:

Disabilities

Physical or mental impairments that significantly restrict one or more major life activities.

Diversity

The inclusion of individuals with different characteristics and backgrounds, such as ethnicity, gender, age, sexual orientation, and beliefs, within a group or organization.

Workforce

The pool of individuals engaged in or available for work, either in a specific company or in the economy as a whole.

Power Distance

A cultural dimension that describes the extent to which less powerful members of organizations or societies accept and expect power to be distributed unequally.