Bill installed a server and 5 workstations at Smiling' Dave's dental clinic, and billed Dave $12,000 for the work. To complete the work, Bill paid $8,000 for the server and the workstations, $500 in networking equipment, and $1,000 to an assistant for labor during the installation. Following the completion of the work, Dave made one $1,000 payment to Bill and then fled the country after being indicted for Medicaid fraud. How much can Bill deduct as a business bad debt?