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34. LO.1 Sally is in the business of purchasing accounts receivable. Last year Sally pur- chased an account receivable with a face value of $80,000

34. LO.1 Sally is in the business of purchasing accounts receivable. Last year Sally pur- chased an account receivable with a face value of $80,000 for $60,000. During the current year, Sally settled the account, receiving $65,000. Determine the maxi- mum amount of the bad debt deduction for Sally for the current year.

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