20. John files a return as a single taxpayer. In 2019, he had the following items: Salary of $30,000 Loss of $63,000 on the sale of Section 1244 stock acquired two years ago Interest income of $8,000 In 2020, John again files a return as a single taxpayer and had the following items: Salary of $114,000 Loss of $55,000 on the sale of Section 1244 stock acquired three years ago Capital gain of $22,000 on the sale of publicly traded stock purchased one year ago Determine John's AGI for 2019 and 2020 (assume these are the only transactions, no other carryovers etc...) a. $0 and $56,000 b. $0 and $55,000 c. $8,000 and $64,00 d. $38,000 and $64,000 e. None of a through d is correct 21. Two years ago, Gina loaned Tom $50,000. Tom signed a note the terms of which called for monthly payments of $2,000 plus 6% interest on the outstanding balance. Last year, when the balance owing on the loan was $16,000, Tom defaulted on the note. As of the end of last year, there appeared to be no reasonable prospect of Gina recovering the S16,000. As a consequence, Gina claimed the $16,000 as a nonbusiness bad debt. Last year, Gina had AGI of $50,000, which included $14,000 of net long-term capital gains, Gina did not itemize her deductions. During the current year, Tom paid Gina $5,000 in final settlement of the loan. How should Gina account for the payment in the current year? a. File an amended tax return for last year. b. Report no income for the current year. c. Report $5,000 of income for the current year d. Report S14,000 of income for the current year e. None of these