Nicholas loaned Lyle (a friend) $30,000 in 2008 with the agreement that the loan would be repaid in two years. In 2009, Lyle filed for bankruptcy and Nicholas learned that he could expect to receive $0.50 on the dollar. In 2010, final settlement was made and Nicholas received $16,000. Assuming the loan is a non-business bad debt, how should Nicholas account for the bad debt?

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Lyne 530000 ONichalas Loaned in ... View the full answer