Last year, Bellatrix purchased a $120,000 account receivable for $100,000. During the current year, Bellatrix collected $107,000 on the account. What are the tax consequences to Bellatrix associated with the collection of the account receivable? No subsequent collections are expected. a. $20,000 gain b. $13,000 gain c. $13,000 loss d. None of the above Arthur Wesley's car, which he uses 100% for personal purposes, was completely destroyed in an accident at Hogwart. The car's adjusted basis at the time of the accident was $23,000. Its fair market value was $20,000. The car was covered by a $5,000 deductible insurance policy. Arthur did not file claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross income was $18,000 (before considering the loss). What is Arthur's deductible loss? a. $0 b. $3, 100 c. $500 d. $9, 500