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Taxpayer incurred a $20,000 nonbusiness bad debt last year. Taxpayer also had a $9,000 long-term capital gain last year. Taxpayers taxable income for last year
Taxpayer incurred a $20,000 nonbusiness bad debt last year. Taxpayer also had a $9,000 long-term capital gain last year. Taxpayers taxable income for last year was $15,000. During the current year, Taxpayer collected $15,000 on the debt. How should Taxpayer account for the collection? A. $15,000 income
B. None of these choices are correct.
C. $11,000 income
D. $12,000 income
E. $8,000 income
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