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eBook Exercise 7-21 (Algorithmic) (LO. 1) Last year, Aleshia identified $3,600 as a nonbusiness bad debt. In that tax year, before considering the tax
eBook Exercise 7-21 (Algorithmic) (LO. 1) Last year, Aleshia identified $3,600 as a nonbusiness bad debt. In that tax year, before considering the tax implications of the nonbusiness bad debt, Aleshia had $7,200 of taxable income, of which $2,520 consisted of short-term capital gains. This year, Aleshia collected $3,024 of the amount she had previously identified as a bad debt. Determine Aleshia's tax treatment of the $3,024 received in the current tax year. Aleshia includes of the collection as ordinary income a taxable return of capital a long-term capital gain la short-term capital gain
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