1. On June 2, 2019, Fred's TV Sales sold Mark a large HD TV on account for $ 12,000. Fred's TV Sales uses the accrual method. In 2020, when the balance on the account was $ 8,000, Mark filed for bankruptcy. Fred was notified that he could not expect to receive any of the amount owed to him. In 2021 final settlement was made and Fred received $ 1,000. How much bad debt loss can Fred deduct in 2021? a. $0 b. $ 7,000 c. $ 8,000 d. $ 12,000 e. None of these. 4. On September 3, 2020, Able, a single individual, purchased Code Section 1244 stock in Red Corporation from his friend Al for $ 60,000. On December 31,2020, the stock was worth $85,000. On August 15, 2021, Able was notified that the stock was worthless. How should Able report this item on his 2021 tax return? a. $ 85,000 capital loss. b. $ 85,000 ordinary loss. C. $ 50,000 ordinary loss and $ 35,000 capital loss. d. $ 60,000 ordinary loss. None of these. e