Cary Is Experiencing Cash Flow Problems During the Current Year

question 127

Multiple Choice

Cary is experiencing cash flow problems during the current year. Rather than foreclose on an $80,000 business loan, his bank agrees to reduce the debt to $50,000. Prior to the debt reduction, Cary's total assets were $500,000 and his total liabilities were $510,000. How much income must Cary recognize from the reduction of his bank loan?

• A)- 0 -
• B)$10,000
• C)$20,000
• D)$30,000

---

Definitions:

Keywords

Words or phrases used to describe content or used in searches to find relevant documents or information.

Internet Searches

The process of using a web browser to enter queries into a search engine to find specific information on the internet.

Semantic Web

An extension of the current Web, aimed at providing a more meaningful and structured way of representing data on the internet.

Metadata

Data that provides information about other data, such as the format, content, and context, which helps in its identification, management, and understanding.