Question
J lends $20,000 to B and it is a business debt. In 2016 B declares bankruptcy and J learns that other creditors in her situation
J lends $20,000 to B and it is a business debt. In 2016 B declares bankruptcy and J learns that other creditors in her situation will most likely receive 20 cents on the dollar for the loans outstanding. J doesnt receive any repayment until 2017, when she receives $2,000. How much may J deduct in 2016? 2017? Would the answers change if it was a non-business bad debt?
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Cost Accounting For Managerial Planning Decision Making And Control
Authors: Andrew Schiff, Hsihui Chang, Woody M Liao, James L Boockholdt
5th Edition
0759340412, 978-0759340411
