Problemmary incurred a 20000 nonbusiness bad debt last year, Ask an Expert

Finance

Problem:

Mary incurred a $20,000 nonbusiness bad debt last year. She also had an $8,000 long-term capital gain last year. Her taxable income for last year was an NOL of $15,000. During the current year, she unexpectedly collected $12,000 on the debt.

Required:

How should Mary account for the collection?

Note: Explain all calculation and formulas.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148037

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