On june 2, 2019, harold's tv sales sold richard a large hd tv, on account, for $12,000. harold's tv sales uses the accrual method. in 2020, when the balance on the account was $8,000, richard filed for bankruptcy. harold was notified that he could expect to receive 60 cents on the dollar of the amount owed to him. in 2021, final settlement was made and harold received $5,000. how much bad debt loss can harold deduct and in which year(s)?

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold