Question: In 2012 Gerald loaned Main Street Bakery $55,000. In 2013, he learned that he would probably receive only $6,400 of the loan. In 2014 Gerald

In 2012 Gerald loaned Main Street Bakery $55,000. In 2013, he learned that he would probably receive only $6,400 of the loan. In 2014 Gerald received $3,000 in final settlement of the loan. Calculate Gerald’s possible deductions with respect to the loan for 2012, 2013, and 2014.

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