Brenda and Kipp are not related During 2021, Brenda loans Kipp $30,000, which he intends to use to establish a small business Under the terms of the loan Kipp agrees to repay Brenda the $30,000 plus interest (at a reasonable stated rate) over a five-year period. The business is unsuccessful and Kipp is forced to file for bankruptcy in 2022 By the end of 2022, it is estimated that the creditors will receive only 45% of the amount owed In 2023 the bankruptcy proceedings are closed, and the creditors receive 15% of the amount due on the debt Requirement What is Brenda's bad debt deduction for 2022? For 2023? (Complete all input fields Enter a 0 if no bad debt deduction can be taken) Brenda's bad debt deduction for 2022 will be Brenda's bad debt deduction for 2023 will be
Brenda and Kipp are not related During 2021, Brenda loans Kipp $30,000, which he intends to use to establish a small business Under the terms of the loan Kipp agrees to repay Brenda the $30,000 plus interest (at a reasonable stated rate) over a five-year period. The business is unsuccessful and Kipp is forced to file for bankruptcy in 2022 By the end of 2022, it is estimated that the creditors will receive only 45% of the amount owed In 2023 the bankruptcy proceedings are closed, and the creditors receive 15% of the amount due on the debt Requirement What is Brenda's bad debt deduction for 2022? For 2023? (Complete all input fields Enter a 0 if no bad debt deduction can be taken) Brenda's bad debt deduction for 2022 will be Brenda's bad debt deduction for 2023 will be
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 56P
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