MG is an accrual basis corporation. In 2021, it wrote off a $65,000 account receivable as uncollectible.

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MG is an accrual basis corporation. In 2021, it wrote off a $65,000 account receivable as uncollectible. In 2022, it received a $65,000 check from the creditor in full payment of this receivable.

a. What was the effect of the write-off on MG’s 2021 financial statement income and taxable income?

b. What was the effect of the collection of the receivable on MG’s 2022 financial statement income and taxable income?

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Principles Of Taxation For Business And Investment Planning 2023

ISBN: 9781264229741

26th Edition

Authors: Sally Jones, Shelley Rhoades-Catanach, Sandra Callaghan, Thomas Kubick

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Question Posted: Jul 25, 2023 08:51 AM

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MG is an accrual basis corporation. In 2021, it wrote off a $65,000 account receivable as uncollectible.

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Principles Of Taxation For Business And Investment Planning 2023

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