In 2010, Tru Corporation Deducted $5,000 of Bad Debts

question 51

Essay

In 2010, Tru Corporation deducted $5,000 of bad debts.It received no tax benefit from the deduction because it had an NOL in 2010 that it was unable to carry back or forward.In 2011, Tru recovered $4,000 of the amount due. a)What amount must Tru include in income in 2011?
B)What effect does the $4,000 have on E&P in 2011, if any?

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Definitions:

Conscientiousness

A personality trait characterized by thoroughness, efficiency, and organization, often linked to high job performance.

Occupational Groups

Collections of jobs that are similar in terms of their main tasks, responsibilities, and the qualifications or training needed to perform them.

Job Performance

The level of effectiveness and efficiency with which an employee carries out their job duties.

Surface-Level Diversity

Involves individual differences in visible attributes such as race, sex, age, and physical abilities.