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:

Corporate Advertiser

A company that promotes its products, services, or brand through various advertising channels to enhance its market presence and consumer base.

Feminization of Migration

A trend where a growing number of female migrants move internationally for economic opportunities, family, or as refugees.

Patriarchal Workforce

A workforce structure where males predominantly hold positions of power and authority, influencing decision-making and organizational culture.

Invisible Workers

Individuals whose contributions to the workforce or home are undervalued or overlooked, often due to societal, economic, or cultural factors.