When marketers define consumers by product usage they use the ________ rule

What is the effect of bad debts on revenue recognition under the proposed ASU?

A. Bad debts are recognized as an extraordinary item. B. Bad debts must be estimable in order to recognize revenue. C. Bad debts are deducted from revenue to calculate net revenue on the income statement, similar to sales returns. D. Bad debts are an expense.

On February 1, Year 5, Hall learned that he was bequeathed 500 shares of common stock under his father's will. Hall's father had paid $2,500 for the stock in Year 1. Fair market value of the stock on February 1, Year 5, the date of his father's death, was $4,000 and had increased to $5,500 6 months later. The executor of the estate elected the alternate valuation date for estate tax purposes. Hall sold the stock for $4,500 on June 1, Year 5, the date that the executor distributed the stock to him. How much income should Hall include in his Year 5 individual income tax return for the inheritance of the 500 shares of stock that he received from his father's estate?

a. $5,500 b. $4,000 c. $0 d. $2,500