The occurrence which most likely would have no effect on 2010 net income (assuming that all amounts involved are material) is the
a. sale in 2010 of an office building contributed by a stockholder in 1983.
b. collection in 2010 of a receivable from a customer whose account was written off in 2009 by a charge to the allowance account.
c. settlement based on litigation in 2010 of previously unrecognized damages from a serious accident which occurred in 2008.
d. worthlessness determined in 2010 of stock purchased on a speculative basis in 2006.
Answer: b. collection in 2010 of a receivable from a customer whose account was written off in 2009 by a charge to the allowance account.
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