How does the tax benefit rule apply in the following cases? a. In 2017, the Orange Furniture Store, an accrual method taxpayer, sold furniture on credit for $1,000 to Sammy. Orange's cost of the furniture was $600. In 2018, Orange took a bad debt deduction for the $1,000 because Sammy would not pay his bill. In 2019, Sammy inherited some money and paid Orange the $1,000 he owed. Orange's owner was in the 35% marginal tax bracket in 2017, the 12% marginal tax bracket in 2018, and the 35% marginal tax bracket in 2019. 1,000 in gross income as the recovery of a prior deduction. The timing of the income and Orange Furniture must include $ deductions cost Orange $ X