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2 August, 21:22

Last year Aleshia identified $15,000 as a nonbusiness bad debt. In that tax year, before considering the tax implications of the nonbusiness bad debt, Aleshia had $100,000 of taxable income, of which $12,000 consisted of short-term capital gains. This year Aleshia collected $8,000 of the amount she had previously identified as a bad debt. Determine Aleshia's tax treatment of the $8,000 received in the current tax year.

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  1. 2 August, 21:32
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    Aleshia's tax treatment of the $8,000 received in the current tax year is $8,000

    Explanation:

    Aleshia identified bad debt in nonbusiness = $15000

    taxable income = $100,000

    Short term capital gains = $12,000

    Aleshia collected amount = $8,000

    from the information:

    Last year income = current Year income

    gross income of current year = $8,000

    Therefore, Aleshia's tax treatment of the $8,000 received in the current tax year is $8,000
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