Peggy Is in the Business of Factoring Accounts Receivable

question 43

Multiple Choice

Peggy is in the business of factoring accounts receivable.Last year,she purchased a $30,000 account receivable for $25,000.This year,the account was settled for $18,000.How much loss can Peggy deduct and in which year?

• A)$5,000 for the current year.
• B)$5,000 for the prior year and $7,000 for the current year.
• C)$7,000 for the current year.
• D)$12,000 for the current year.
• E)None of the above.

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Definitions:

Instrumental Conditioning

A training method whereby a behavior's intensity is altered through either positive reinforcement or negative punishment.

Startled

The act of experiencing a sudden, involuntary reaction to an unexpected event or stimulus, often involving physical movement.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Instrumental Conditioning

A learning process in which behavior is modified by the consequences of the behavior, through reinforcement or punishment.