Brandi and Killian are not related. During 2015 Brandi loans Killian $ 50000 which he intends to use to establish a small business. Under the terms of the loan Killian agrees to repay Brandi the $ 50000 plus interest (at a reasonable stated rate) over a five-year period. The business is unsuccessful, and Killian is forced to file for bankruptcy in 2016.

By the end of 2016 it is estimated that the creditors will receive only 45 % of the amount owed. In 2017 the bankruptcy proceedings are closed, and the creditors receive 10 % of the amount due on the debt.

Requirement

What is Brandi's bad debt deduction for 2016? For 2017?

(Enter a "0" if no bad debt deduction can be taken.)

Brandi's bad debt deduction will be

$

for 2016 and

$

for 2017