In 20X1 Ross loaned $10,000 to a small business corporation. The loan bears interest at 6% per annum and is due on demand. Ross did not receive his interest in 20X3 although he reported it on his 20X3 tax return. By December 31, 20X4, it was established that the loan was bad and that Ross would not be receiving the $10,000 principal and the interest for 20X3 nor 20X4.
Determine the 20X4 tax consequences for Ross. Income tax reference: ITA 20(1)(p), 39(1)(c), 50(1).