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noname [10]
3 years ago
12

Ellen loans Nicole $45,000 to start a hair salon. Unfortunately, the business fails in 2019 and she is unable to pay back Ellen.

In 2019, Ellen also had $20,000 of income from her part-time job and $15,000 of capital gain from the sale of stock. How much of the $45,000 bad debt can Ellen claim as a capital loss in 2019? a. $12,000, with $33,000 carried forward to 2020 b. $0 c. $18,000, with $27,000 carried forward to 2020 d. $15,000, with $30,000 carried forward to 2020 e. $35,000
Business
1 answer:
Dahasolnce [82]3 years ago
5 0

Answer:

c. $18,000, with $27,000 carried forward to 2020.

Explanation:

Non-business bad debts are accounted as short-term capital losses. Short-term and long-term capital gains may be offset by short-term capital losses. Ellen may offset $15,000 of her $45,000 bad debt from Nicole against the $15,000 capital gain from the sale of stock.

In addition, Ellen may claim up to the annual limitation amount of $3,000 in short-term capital losses. In total, $18,000 of the bad debt can be claimed as a capital loss in the current year with $27,000 in unused short-term capital losses carried forward.

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Answer:

Operate the business in a manner that promotes the longevity of sustainability effects.

Explanation:

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3 years ago
A cell phone provider charges felicia $50 per month for her plan plus $0.05 per min of long distance calls.if felicia wants to k
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All of the following are factors that may complicate capital investment analysis except a.sunk costs b.changes in price levels c
alexira [117]

Answer:

a. sunk costs.

Explanation:

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The correct answer is sunk cost because it doesn't complicate capital investment analysis. These costs are not considered when making business decisions or analysis of capital investments.

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3 years ago
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Which of the following has the elements of the supply chain in the correct order?
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6 0
3 years ago
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MAXImum [283]

Answer: $30000

Explanation:

Based on the information given in the question, the required reserve will be:

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3 years ago
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