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The following facts apply to Collins, an individual: In February of the current year, Hodge, who had owed a $5,000 personal debt to Collins for

The following facts apply to Collins, an individual:

  • In February of the current year, Hodge, who had owed a $5,000 personal debt to Collins for the past three years, declared bankruptcy.
  • Collins sold land used in Collinss business for a $10,000 gain. The land had been purchased by Collins five years prior.
  • In July of the current year, Collins received shares of stock as a gift from Bellamy. Bellamy had purchased the shares in January of the current year. In November Collins sold the stock for a gain of $3,000.

Considering only the above facts, what will Collins report on the current year tax return?

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