Milton Is Experiencing Cash Flow Problems During the Current Year

question 6

Multiple Choice

Milton is experiencing cash flow problems during the current year. He owes $12,000 on his credit card. The credit card company agrees to reduce the debt to $9,000. Prior to the debt reduction, Milton's total assets were $40,000 and his total liabilities were $39,000. How much income must Milton recognize from the reduction of his credit card balance?

• A)- 0 -
• B)$1,000
• C)$2,000
• D)$3,000

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Definitions:

Leader Abilities

The skills and competencies that enable an individual to effectively guide or direct a group or organization.

Social Skills

The abilities used to communicate and interact with others effectively, including both verbal and non-verbal communication.

Intelligence

The ability to acquire and apply knowledge and skills, showing adaptability and understanding in different contexts.

Transactional Leaders

Leaders who focus on the role of supervision, organization, and group performance, often using rewards and punishments to motivate employees.