Struggling on $7-5.$ Would only the sale of stock be reported or would the sale and investment be reported? If so where would they even go on Tax documents?

$7-6$ is more i am unsure of$.$ I have been reading for it and belive i found the answer but questioning myself.

$7-5.$ Ernest invested in a startup company, SkyHI Corp., that was trying to get a newly designed general aviation aircraft certified. After certification, the company planned to build and sell the aircraft. This is a qualified small business corporation $(1244$ stock company$).$ He bought $5,000$ shares for $$200,000$ on $3/12/2018.$ He sold $1,000$ shares on $6/15/2022$ for $$36,000.$ This transaction was reported to him on form $1099$B$,$ basis reported to the IRS, but I have not provided you with a copy of this $1099$B$.$ Hint, this transaction is entered as an asset sale, but it is reported on form $4797.$ We have not previously discussed this form. You will designate that it is a $1244$ stock sale on the $$schedule D$$ input of the asset sale form, similar to the bad debt, and worthless security.

$7-6.$ The Shackleton$$s took a non$-$business bad debt deduction on their $2021$ taxes for a non$-$business loan they had made in $2020.$ This is different than the Roald Amundsen loan discussed in $7-2.$ The deduction was for $$700$ and was the total amount of the loan. On $4/18/2022,$ the person who borrowed the money paid $$350$ of the debt. The Shackleton$$s $2021$ tax return showed taxable income of $$58,000$ and capital gains of $$5,000.$ Hint, this is a tax benefit rule problem for recovery of a nonbusiness bad debt. You should not take the difference between itemized and standard deductions, because nonbusiness bad debt is not a schedule A deduction. You can determine from the information given if this nonbusiness bad debt was a tax benefit in $2021.$ If you decide the repayment is income for $2022,$ you can find where to report it in Pub $525,$ under $$Recoveries$,$ then subtitle $$where to report$$