eBook Print Item Problem 7-34 (LO. 1) Sally is in the business of purchasing accounts receivable. Last year Sally purchased an account receivable with a face value of $80,000 for $60,000. During the current year Sally settled the accounts receiving $65,000. Determine the maximum amount of the bad debt deduction for Sally for the current year If an amount is zero, enter "o". Sally's bis in the account receivable is s 60,000 Therefore, she has a bad debt deduction of 5,000 and income of eBook Print Item Problem 7-33 (LO. 1) Monty loaned his friend Ned $20,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $11,000, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $11,000 as a nonbusiness bad debt. Last year before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $9,000 and taxable income of $45,000. During the current year. Ned paid Monty $10,000 in satisfaction of the debt. Determine Monty's tax treatment for the $10,000 received in the current year. The nonbusiness bad debt of $11,000 would have been reported as a ordinary loss be included in Monty's gross income this year. wand 6,600 would