Question: Problem 3-18 Bad Debts (LO 3.10) Steinar loaned a friend $9,500 to buy some stock 3 years ago. In the current year the debt became

Problem 3-18 Bad Debts (LO 3.10)

Steinar loaned a friend $9,500 to buy some stock 3 years ago. In the current year the debt became worthless.

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a. How much is Steinar's deduction for the bad debt for this year? (Assume he has no other capital gains or losses.) $fill in the blank d9c7b902a03103c_1 as a

businessnonbusiness

bad debt.

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b. What can Steinar do with the deduction not used this year?

The remaining $fill in the blank fb8ce6094f9a046_1 can be carried forward as a

long term lossshort term loss

and deducted in future years, subject to

an annual limitationno further limitation

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