Anyone looking for a challenge?

The following item appeared on a 50-item Problem Solving Diagnostic Test that is given to middle schoolers (yeah, go figure).

This was the only one that I couldn't figure out. How do we relate the $800 to what is owed?

Do we have any CPA's here?

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~Jay~
Husband of ENS, father of J II. | Indian Trail, NC
Currently disabled due to health issues
Communicant Member, Precentor | Presbyterian Reformed Church of Charlotte, NC | Presbyterian Reformed Church

X plus 800 = X plus 5%, since the difference between 25 cents and 30 cents is 5% on the dollar, so the answer is 16,000 ? (warning, I do manual labor so don't turn this in as an answer).

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Tim Vaughan, 48 years old, member Redeemer OPC, Santa Maria CA.

Forget equations and solving for variables. That just makes things messy

If I interpret the problem correctly, $800 is 5% of the debt.

So 800*20 is the answer, me thinks. My vote is for C, $16k.

I'm not a CPA, but I do tutor math for the SAT, so I should hope that I'm right

For what it's worth, the problem should be phrased better.

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Jeremy Gage
First Baptist Church
Durham, NC

"No heart can conceive that treasury of mercies which lies in this one privilege, in having liberty and ability to approach unto God at all times, according to his mind and will." - John Owen

I read the question they same way as Jeremy.

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Kenneth Murphy
M.A.R. Student [Theology & Biblical Languages] - Whitefield Theological Seminary
Covenant of Grace Church - Member
St. Charles, MO

I put my plug in for C $16,000. I'm an accountant (cost mostly) so don't tell my employer if that's not correct!

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VKochetta
Ruling Elder, PCA
Georgia

I go with C) being the answer as well. I also concure with the question being phrased obtusely.

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Hermonta Godwin
Christ The King PCA
Raleigh, NC

$16,000.00

$800.00 / $16,000.00 = $0.05, the only answer that fits.

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~James Helbert~, Wytheville, VA
Providence Reformed Presbyterian Church, RPCUS
TheBibleAlone.com / The Edinburgh Inn
"Is this not a brand plucked from the fire?” - Zechariah 3:2

you guys got it, "was able to pay" evidently, exegeted means "paid every cent they had on hand to settle".

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Bruce
PCUSA
Ocean City NJ

The "Message" version of the question, not wanting to overly tax the modern reader would restate the question as ...

A company that owed $16,000 was forced out of business by a competitor. How much did it owe?

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Kenneth Murphy
M.A.R. Student [Theology & Biblical Languages] - Whitefield Theological Seminary
Covenant of Grace Church - Member
St. Charles, MO

Assuming that the competitor wrote off the debt (and assuming the debt was owed to the competitor, otherwise how did it "force" it out of business?), the company also owes tax to the Fed for discarge of debt income. Figure it owes another $3,920 in taxes if it's a C corp.

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R.Vic Bottomly
Providence Reformed Baptist Church, Tacoma, WA

Click to get: Board Rules -- Signature Requirements -- Suggestions?

Thanks, guys. Not only for the solution, but for increasing my confidence that I wasn't the only one who thought that the question was poorly worded.

It makes sense now.

__________________
~Jay~
Husband of ENS, father of J II. | Indian Trail, NC
Currently disabled due to health issues
Communicant Member, Precentor | Presbyterian Reformed Church of Charlotte, NC | Presbyterian Reformed Church