Laurie owns land that serves as security for a $60,000 mortgage. Her basis in the land is $20,000 and the fair market value is $50,000. Laurie is not personally liable for the loan. The bank forecloses on the property. What is the tax consequence to Laurie? A. Laurie recognize income in the amount of his discharge of indebtedness; $60,000.
B. Laurie has a gain on the transfer and must recognize income of $40,000.
C. Laurie has $40,000 of income; a gain of $30,000 on the transfer and discharge of indebtedness of $10,000.
D. Both (a) and (b).
E. None of the above.

Moody corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. at the beginning of the year, the company made the following estimates: machine-hours required to support estimated production 100,000 fixed manufacturing overhead cost $ 650,000 variable manufacturing overhead cost per machine-hour $ 3.00 required: 1. compute the plantwide predetermined overhead rate. 2. during the year, job 400 was started and completed. the following information was available with respect to this job: direct materials $ 450 direct labor cost $ 210 machine-hours used 40