Tommy, an automobile mechanic employed by an auto dealership, is considering opening a fast food franchise. If Tommy decides not to acquire the fast food franchise, any investigation expenses are: A deduction from AGI, subject to the 2 percent floor. Not deductible. Deductible up to $5,000 in the current year with the balance being amortized over a 180-month period. A deduction for AGI. A deduction from AGI, not subject to the 2 percent floor. Question 12 (3 points) Two years ago, Gina loaned Tom $50,000. Tom signed a note the terms of which called for monthly payments of $2,000 plus 6% interest on the outstanding balance. Last year, when the balance owing on the loan was $18,000, Tom defaulted on the note. As of the end of last year, there appeared to be no reasonable prospect of Gina recovering the $18,000. As a consequence, Gina claimed the $18,000 as a nonbusiness bad debt. Last year, Gina had AGI of $50,000 which included $ 16,000 of net long-term capital gains. Gina did not itemize her deductions. During the current year, Tom paid Gina $13,000 in final settlement of the loan. How should Gina account for the payment in the current year? Report $13,000 of income for the current year. File an amended tax return for last year. Report $2,000 of income for the current year. Report no income for the current year