Monty loaned his friend ned 20000 three years ago ned, Ask an Expert

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Monty loaned his friend Ned $20,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was 14,000, ned filed for bancrupcy and was unable to repay the loan. Monty treated $14,000 as a nonbusiness debt. Last year Monty received $2,000 in satisfaction of the debt.Determine Monty's tax treatment for the $2,000 received in current year.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9975450

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