Question

Due to population change, Goose Creek School District has decided to close one of its high schools. Since it has no further need of the property, the school is listed for sale. The two bids it receives are as follows:

United Methodist Church $1,700,000 Planet Motors 1,600,000

The United Methodist Church would use the property to establish a sectarian middle school. Planet, a well-known car dealership, would revamp the property and operate it as a branch location.

Identify the factors that should be considered in determining whether a transaction is a business bad debt or a non-business bad debt.

Answer 1