Gus Owes $50,000 in Credit Card Debt to Neighbor's Bank

question 117

Multiple Choice

Gus owes $50,000 in credit card debt to Neighbor's Bank. Gus was having financial difficulties during the current year and Neighbor's Bank agreed to reduce Gus's debt to $20,000 to help him get his financial affairs in order and avoid bankruptcy.
I.If Gus's assets were $100,000 and his liabilities were $150,000 before the discharge, he is not taxed on any of the $30,000 debt reduction.
II.If Gus's assets were $80,000 and his liabilities were $100,000 before the discharge, he is taxed on all $30,000 of the debt reduction.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

Identify different roles and functions of religious specialists in various societies.

Understand the practices and beliefs related to healing and wellness in foraging societies.

Recognize the factors influencing the formation of patriarchal or matriarchal religious structures.

Comprehend the role and significance of shamanism across cultures.

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Definitions:

Deadweight Loss

A loss in economic efficiency that occurs when the optimal quantity of a good is not produced, often due to market distortions.

Daily Demand

The total amount of a good or service that consumers are willing and able to purchase at a particular price in a single day.

Tax

A necessary financial obligation or variant form of imposition placed upon a taxpayer by a governing institution aimed at generating income for government use and public expense funding.

Deadweight Loss

The loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.