Kim owns 50,000 shares of stock in LMN Corporation. She receives a dividend on the stock of $1 per share. How does Kim report this $50,000 dividend payment?

Group of answer choices

Kim will report the full $50,000 on her gross income for the year

Kim can claim $25,000 this year and defer the other $25,000 to next year

Kim doesnt need to claim any part of the dividend until she sells the stock

Kim gets to keep the $50,000 without claiming any of this amount in her income

Jim owns & operates a pencil manufacturing business that extends lines of credit to its customers, subject to a 30-day payment period. Office Emporium ordered $5,000 of pencils for its store on account in August of 2022 from Jim in anticipation of the back-to-school season. In December of 2022, Jim still has not received $2,500 in payment from Office Emporium, and Jim determines this amount to be uncollectible. Jim uses the cash method of accounting. Which of the following options is correct?

Jim may claim a bad-debt expense deduction on his 2022 taxes for the $2,500 of uncollectible receivable.

Since Jim cannot claim a bad-debt expense deduction in 2022, he can carry the $2,500 loss forward into 2023

Jim cannot claim any bad-debt expense this year.

In 2018, Hamad acquired a car for $12,000. He uses the vehicle in his advertising business and for personal purposes. Her records indicate the vehicle is used 60% for business and that the total operating expenses, including depreciation, are $4,200. How much can Hamad deduct for the cost of operating the care in the current year?

2520

4200

0

1680

Michael borrowed $25,000 for his business from a local bank two years ago. To increase his deductions for 2021, he pays December interest of $400 and prepays January and February interest totaling $800 on December 30, 2021. The maturity date of the note is November 30, 2022. How much of the interest that he paid in December is deductible in 2021?

$400

$0

$1,200

$800