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:

Glucostatic Theory

A theory suggesting that the body regulates blood glucose levels to maintain energy balance, influencing eating behavior.

Incentive Value

The attractiveness or desirability of a reward or outcome, influencing motivation and behavior.

Set-point Theory

The theory that suggests body weight is regulated at a predetermined, or preferred, level by a feedback control mechanism.

Hedonic Adaptation

The observed process of becoming accustomed to a new situation or stimulus, causing the emotional effects of that stimulus to diminish over time.