Question 1.1. Manley operates a law practice on the accrual method and calendar year. At the beginning of the year Manley's firm had an allowance for doubtful accounts with a balance of $18,000. At the end of the year, Manley recorded bad debt expense of $23,000 and the balance of doubtful accounts had increased to $15,000. What is Manley's deduction for bad debt expense this year? (Points : 2)

A. $23,000 B. $3,000 C. $26,000 D. $5,000 E. $20,000

5. Roger, an individual, owns a proprietorship called Green Thing. For the year 2015, Roger has the following items:

Business income$200,000.

Business expense$150,000.

Loss on a completely destroyed business machine. The machine had an adjusted basis of $25,000 and a fair market value of $20,000.

Loss on a business truck. The truck had an adjusted basis of $8,000. The repairs to fix the truck cost $10,000.

What is Rogers adjusted gross income for 2015? (Points : 2)

A. $11,800 B. $15,000 C. $16,800 D. $17,000 E. $20,000 F. $22,000