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$3,000
$7,000
$10,000Vera has a key supplier for her business that
is facing cash flow problems that would impair Vera\'s
ability to get shipments of key components for her
production. Vera made a $10,000 loan to the supplier.
Unfortunately, the supplier filed for bankruptcy and has
gone out of business without repaying Vera. What will Vera
be able to recognize as a loss? (Points : 3)
Solution
Hi,
Option D ($10000) is the correct answer.
Explanation:
The amount of money given by Vera would be treated as a
loan and in the event of non-payment it will be treated as a
bad debt. The entire amount due from the supplier would
therefore be treated as a loss and allowed as a deduction.
Thanks.

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-0$3,000 $7,000 $10,000Vera has a key supplier for her business that is facing cash flow problems that would impair Vera \'s ability to get shipments of key components for her production. Vera made a $10,000 loan to the supplier. Unfortunately, the supplier file d for bankruptcy and has gone out of business without repaying Vera. What will Vera be able to recognize as a loss? (Points : 3) Solution Hi, Option D ($10000) is the correct answer. Explanation: The amount of money given by Vera would be treated as a loan and in the event of non-payment it will be treated as a bad debt. The entire a ...
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