MG is an accrual basis corporation. In 2018, it wrote off a $65,000 account receivable as uncollectible.

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MG is an accrual basis corporation. In 2018, it wrote off a $65,000 account receivable as uncollectible. In 2019, 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 2018 financial statement income and taxable income?

b. What was the effect of the collection of the receivable on MG’s 2019 financial statement income and taxable income?

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Principles Of Taxation For Business And Investment Planning 2020

ISBN: 9781259969546

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Authors: Sally Jones, Shelley Rhoades Catanach

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Question Posted: Aug 12, 2020 04:30 AM

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MG is an accrual basis corporation. In 2018, it wrote off a $65,000 account receivable as uncollectible.

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a For financial statement purposes the 65000 writeoff was charged against the allowance for ba...View the full answer

Principles Of Taxation For Business And Investment Planning 2020

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