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Exercise 6-1 (Algorithmic) (LO. 1) Last year, Aleshia identified $29,000 as a nonbusiness bad debt. In that tax year before considering the tax implications of
Exercise 6-1 (Algorithmic) (LO. 1) Last year, Aleshia identified $29,000 as a nonbusiness bad debt. In that tax year before considering the tax implications of the nonbusiness bad debt, Aleshia had $58,000 of taxable income, of which $5,800 consisted of short-term capital gains. This year, Aleshia collected $6,960 of the amount she had previously identified as a bad debt. Determine Aleshia's tax treatment of the $6,960 received in the current tax year. Aleshia includes $ of the collection as
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