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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $10,800 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 income .

**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.
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].
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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