Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. why is cancelled recourse debt treated as income?

Why is cancelled recourse debt treated as income? 1) Because the taxpayer received the benefit...

50.1K

Verified Solution

Question

Accounting

Why is cancelled recourse debt treated as income?

1) Because the taxpayer received the benefit of the use of the money but did not carry the burden of repayment.

2) Because a deduction is allowed if the debt is related to the taxpayer's primary residence.

3) Because recourse debt is subject to discharge in bankruptcy. (This answer is incorrect. It was marked wrong on my quiz.)

4) Because recourse debt is not subject to discharge in bankruptcy.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

2.5 Use the de Broglie relation λ=h/p to find the wavelength of electrons with kinetic energy...

Physics
Q

5. Show that if R is a division ring,then Mn(R) has no nontrivial two-sided ideals.

Advance Math
Q

A biologist conducts an experiment designed to determine whether a particular type of molecule is...

Biology
Q

Life Cycle Resulting structure from meiosis Occurrence of mitosis Plants Anl

Biology
Q

mL 4 The doctor orders Unipen 400 mg IM The medication is supplied as Unipen...

Basic Math
Q

Studies show that 5 of all credit card holders eventually become delinquent Determine the probability...

Statistics
Q

3 Suppose a triangle has angle A 58 side a 11 4 and side b...

Algebra
Q

On January 1, 2022, the ledger of Sheffield Company contains these liability accounts. Accounts Payable...

Accounting
Q

b Lansing. Inc provides the following information for one...

Accounting
Q

ASSIGNMENT-2021 on 31 December 2021 the following balances were extracted from the books of Pope,...

Accounting
Q

nran and dron either a "debit" or a "credit" beside each item listed below

Accounting
Q

Chocolate Bars, Inc. (CBI), manufactures creamy deluxe chocolate candy bars. The firm has developed three...

Accounting