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The author of a new textbook , who is in a 20% tax bracket, received a $100,000 advance from the publisher this year. $20,000 of

The author of a new textbook , who is in a 20% tax bracket, received a $100,000 advance from the publisher this year. $20,000 of income taxes were paid on the advance when received. The textbook will not be finished until next year. what is the carrying value of the advance at the end of the year.

a) $0

b) $100,000

c) $20,000

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