(Bad Debts) During 2014, Steve Jobs sold software products to Bill Gates on account for $20,000. In 2015, when the balance on the account was $11,000, Bill filed for bankruptcy and Steve was notified that he could not receive any of the amounts owed to him. In 2016, final settlement was made and Steve received $5,000. 1) How much bad debt loss will Steve deduct in 2015? 2) How much will Steve include in his gross income during 2016? a) if the bad debt deduction provided tax benefit of $11,000 in 2015 b) if the bad debt deduction provided tax benefit of $2,000 in 2015