[Topsya]

Here is the question:

The Hyldina Corporation has an account receivable for $10,000 from Prosgko Corporation that is outstanding at the end of Year One. The debt was incurred as a result of normal business tranactions. Prosgko is a relatively new customer from a neighboring town. Hyldina believes that there is an 8 percent chance of collecting this receivable. Hyldina is an accrual basis taxpayer. What can be deducted by Hyldina on the company’s Year One income tax return?

a. Zero

b. $800

c. $4,000

d. $10,000

What is the answer? Can we deduct partially worthless Business Bad Debts?

THANKSSSS!!!!!!!!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

Wow, Thank you SO MUCH! Great explanation! Appreciate it!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Author]

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