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 account, 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 basis in the account receivable is s Therefore, she has a bad debt deduction of $ and income of Discussion Question 7-19 (LO. 7) Can deductions for AGI be treated as nonbusiness deductions in computing an individual's NOL? the excess because to arrive at the NOL for an individual, taxable income must be adjusted by over the sum of nonbusiness of nonbusiness Problem 7-33 (Algorithmic) (LO. 1) Monty loaned his friend Ned $27,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $18,900, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $18,900 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $7,560 and taxable income of $36,750. During the current year, Ned paid Monty $17,010 in satisfaction of the debt. Determine Monty's tax treatment for the $17,010 received in the current year. and would be included in The nonbusiness bad debt of $18,900 would have been reported as a Monty's gross income this year