Betsy and Keefer are not related. During 2018, Betsy loans Keefer $30,000,which he intends to use to establish a small business. Under the terms of the loan Keefer agrees to repay Betsy the $30,000 plus interest (at a reasonable stated rate) over a five-year period. The business is unsuccessful, and Keefer is forced to file for bankruptcy in 2019. By the end of 2019,it is estimated that the creditors will receive only 40% of the amount owed. In 2020 the bankruptcy proceedings are closed, and the creditors receive 15% of the amount due on the debt. What is Betsy's bad debt deduction for 2019? For 2020?. In Tax Accounting.