ast year, Aleshia identified $5,400 as a nonbusiness bad debt. In that tax year before considering the tax implications of the nonbusiness bad debt, Aleshia had $10,800 of taxable income, of which $3,780 consisted of short-term capital gains. This year, Aleshia collected $4,536 of the amount she had previously identified as a bad debt. Determine Aleshia's tax treatment of the $4,536 received in the current tax year. Aleshia includes $fill in the blank 1 of the collection as ordinary incom
ast year, Aleshia identified $5,400 as a nonbusiness bad debt. In that tax year before considering the tax implications of the nonbusiness bad debt, Aleshia had $10,800 of taxable income, of which $3,780 consisted of short-term capital gains. This year, Aleshia collected $4,536 of the amount she had previously identified as a bad debt. Determine Aleshia's tax treatment of the $4,536 received in the current tax year. Aleshia includes $fill in the blank 1 of the collection as ordinary incom
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 7-19 (
Last year, Aleshia identified $5,400 as a nonbusiness
Determine Aleshia's tax treatment of the $4,536 received in the current tax year.
Aleshia includes $fill in the blank 1 of the collection as ordinary income .
Transcribed Image Text:**Exercise 7-19 (Algorithmic) (LO. 1)**
Last year, Aleshia identified $5,400 as a nonbusiness bad debt. In that tax year, before considering the tax implications of the nonbusiness bad debt, Aleshia had $10,000 of taxable income, of which $3,700 consisted of short-term capital gains. This year, Aleshia collected $4,356 of the amount she had previously identified as a bad debt.
Determine Aleshia's tax treatment of the $4,356 received in the current tax year.
Aleshia includes **_________** of the collection as ordinary income.
---
**Note:** The blank is intended for educational purposes to allow the learner to calculate or determine the amount that Aleshia should include as ordinary income.
![**Exercise 7-19 (Algorithmic) (LO. 1)**
Last year, Aleshia identified $5,450 as a nonbusiness bad debt. In that tax year before considering the tax implications of the nonbusiness bad debt, Aleshia had $10,000 of taxable income, of which $3,700 consisted of short-term capital gains. This year, Aleshia collected $4,356 of the amount she had previously identified as a bad debt.
Determine Aleshia’s tax treatment of the $4,356 received in the current tax year.
Aleshia includes [blank] of the collection as **ordinary income** [blank].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F062f9891-b96b-4df8-9188-0c66a1ccf921%2F334014db-20ce-41f8-a6bc-84c42b44c0f4%2Frmiemtl_processed.png&w=3840&q=75)
Transcribed Image Text:**Exercise 7-19 (Algorithmic) (LO. 1)**
Last year, Aleshia identified $5,450 as a nonbusiness bad debt. In that tax year before considering the tax implications of the nonbusiness bad debt, Aleshia had $10,000 of taxable income, of which $3,700 consisted of short-term capital gains. This year, Aleshia collected $4,356 of the amount she had previously identified as a bad debt.
Determine Aleshia’s tax treatment of the $4,356 received in the current tax year.
Aleshia includes [blank] of the collection as **ordinary income** [blank].
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