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5. Last year, Lucy purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax
5. Last year, Lucy purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected. a. S0 b. $2,000 gain c. $3,000 loss d. $13,000 loss e. None of these 6. During the year, Sophie (a self-employed marketing consultant) went from Omaha to Lima, Peru, on business. She spent four days on business, two days on travel, and four days on vacation Disregarding the vacation costs, Sophie's expenses are: Airfare Lodging Meals Entertainment $3,000 800 Sophie's deductible expenses are: a. $4,300 b. $2,900. c. $2,800 d. $2,500. e. None of these
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