If a Business Debt Previously Deducted as Partially Worthless Becomes

question 106

True/False

If a business debt previously deducted as partially worthless becomes totally worthless this year, only the amount not previously deducted can be deducted this year.

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Definitions:

Defined Contribution Plan

A type of retirement plan where an employer, employee, or both make contributions on a regular basis, and future benefits fluctuate based on investment performance.

Risk-free Return

The theoretical return on an investment with no risk of financial loss over a certain period.

Standard Deviation

A statistic that quantifies the dispersion or variability of a set of data points or investment returns around their mean.

Defined Contribution Plan

A retirement plan where the amount contributed is specified, but the future benefit is not, with final benefits depending on investment performance.