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Donald, a cash basis dentist, had $7,000 of uncollectible accounts receivable in 2017. Because Donald had always been a cash basis taxpayer, he had not
Donald, a cash basis dentist, had $7,000 of uncollectible accounts receivable in 2017. Because Donald had always been a cash basis taxpayer, he had not reported the $7,000 in taxable income when the services were performed.
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How much of the $7,000 bad debt can Donald take as a bad debt deduction on his 2017 tax return? Explain.
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