Mary incurred a $20,000 nonbusiness bad debt last year. she also had an $18,000 long-term capital gain last year. her taxable income for last year was $25,000. during the current year, she unexpectedly collected $12,000 on the debt. how should mary account for the collection?
a. $0 income
b. $11,000 income
c. $12,000 income
d. $8,000 income
e. none of these choices are correct.

d. $8,000 income

Explanation:

To compute the collection value only debts incurred ,debts collected and debt to be collected needs to be considered.

collectible accounts = debt incurred - debt collected

                                  = $20,000 - $12,000

                                  = $8,000

answer: qué lástima, pero no podré ir.

explanation: the expression "qué lástima" means "what a pity" and indicates disgust, because she would like to go but she can't go.

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