Question: Mary incurred a $ 2 0 , 0 0 0 non business bad debt last year. She also had a $ 1 8 , 0

Mary incurred a $20,000 non business bad debt last year. She also had a $18,000 long term capital gain last year. Her taxable income for last year was $25,000. During the current year, she unexpectedly collected $11,000 on the debt. How should Mary account for the collection?

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