1. 2015, Galaxy Loan Company loaned Victor $50,os. In 20ns, vicertisda o rupteyM
ID: 2548127 • Letter: 1
Question
1. 2015, Galaxy Loan Company loaned Victor $50,os. In 20ns, vicertisda o rupteyMarch 2017, on the dollar. In March 2017 ear? At the time, it was revealed that Victorseredinors could expect to deduct losses as soon as permitted. How much loss can Galany , final settlement was made, and Galawy 2015- $20,000 2016- $25,000 b. 2015- $30,000 2016- $15,000 can Galawg deduct and in which c 2015-$0 d. 2017- $45,000 $0 2016- $45,000 e. None of the above. 10. Joshua loaned Elijah (afriend) $50,000 in 2012 to help him start a business with the ageement that the loan would be repaid in twoyears. In 2016, Elijah filled for bankuptoy and onhua learned that he could expect to receive $0.40 on the dollar. In 2017, final settlement and Joshua received $5,000. Assuming the loan is a nonbusines bad debt,how account for the bad debt? made a. $30,000 ordinary loss in 2016 and $15,000 ordinary b. $30,000 short term capital loss in 2016 c. $45,000 ordinary loss in 2017 d. $45,000 short term capital loss in 2017 e. None of the above lossin 2017 short term capital lossin 2017 11. Anna purchased for $800 a $1,000 bond when it was issued two years ago. Anna amortized $50 of the original issue discount and then sold the bond for $975. statements is correct? Which of the following a. Anna has $25 of long term capital loss b. Annahas no capital gain or loss c. Anna has $125 of long term capital gain d. Anna has $175 of longterm capital gain. e. None of the above. a. Carried back 2 years and forward 5 years b. Added into the basis of new stock acquired c. Gone forever d. Reduced by the deprecation amount e. None of the above 12. When a loss is disallowed under the wash sale rule, the amount of loss disallowed is 13. Sidney is a Dentist. He goes to a dental conference in Las Vegasthat last for 2 days. Afterthe conference he spends another 5 days in Las Vegas. Sidney daimsas adeduction the costof hisExplanation / Answer
11 anna original gained (1000-800) , 200 then amortised $ 50 and sold bond for $975.
i.e. $975-$50-$800= Gain of $125
12 taxayer has to add loss to the cost of new stock, because loss is disallowed under wash sale rule.
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