All of the items were destroyed in the same casualty. Before considering the casualty items Pam reports business income of $80,000, qualified residential interest of $6,000 property rexes on her personal residence of $2,000, and charitable contributions of $4,000. Compute Pam's taxable income for 2016. Pam is single. Business Bad Debt. Elaine is a physician who uses the cash method of accounting for tax purposes. During the current year, Elaine bills Ralph $1, 200 for office visits and outpatient surgery. Unfortunately, unknown to Elaine, Ralph moves away leaving no pay n^and no forwarding address. What is the amount of Elaine's bad debt deduction with payment sect to Ralph's debt? Nonbusiness Had Debt. During 2015, Becky loans her brother Ken $5,000, which he intends to use to establish a small business. Because Ken has no other assets and needs Cash establish the business, the agreement provides that Ken will repay the debt if (and when) sufficient funds are generated from the business. Becky and Ken do not establish an interest. rate. the business is unsuccessful, and Ken is forced to file for bankruptcy in 2016. By the end of 2016, it is estimated that the creditors will receive only 20% of the amount owed in 2017 the bankruptcy proceedings are closed, and the creditors receive 10% of the amount due on the debt. What is Becky's bad debt deduction for 2016? For 2017? Bad Debt Deduction. Assume the same facts as in Problem 1:8-54, except that Becky and Ken are nor related and that under the terms of the loan Ken agrees to repay Becky the $5,000 plus interest (at a reasonable stated rate) over a five-year period. What is Becky's bad debt deduction for 2016? For 2017