When Rick Found Out That Ryan's Liabilities Exceeded His Assets

question 29

True/False

When Rick found out that Ryan's liabilities exceeded his assets by $15,000, he forgave Ryan the $1,000 he owed Rick in hoping that Ryan might get back on his feet. Ryan is allowed to exclude the $1,000 from income.

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Definitions:

Code Of Ethics

A set of principles designed to guide members of a profession, organization, or group in conducting their actions with honesty and integrity.

Public Companies

Corporations whose shares are traded openly on stock exchanges, allowing public investors to buy and sell ownership stakes.

Deontological Theory

An ethical theory that suggests actions are morally right or wrong based on their adherence to rules and duties, regardless of the outcomes.

Utilitarian Notion

A concept in ethics that actions are right if they are useful or for the benefit of a majority, focusing on the outcome of achieving the greatest happiness for the greatest number.