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Business, 05.03.2020 23:06 alexisnichols2001

Several years ago John Johnson, who is in the lending business, loaned Sara $30,000 to purchase an automobile to be used for personal purposes. In August of the current year, Sara filed for bankruptcy, after paying back $1,000 of the loan to John. John was notified by the bankruptcy court that he could not expect to receive more than an additional $4,000. John has contacted you about the possibility of taking a bad debt deduction for the current year.

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Several years ago John Johnson, who is in the lending business, loaned Sara $30,000 to purchase an a...
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