Problem 7-51 (a) (LO. 1, 4, 7)

Gretel, single and aged 42, had the following income and expense items in 2018: Nonbusiness bad debt $4,000 Business bad debt 500 Nonbusiness long-term capital gain 8,200 Nonbusiness short-term capital loss 1,500 Salary 23,000 Interest income 900 Personal casualty gain on an asset held for six months* 6,800 Personal casualty loss on an asset held for three years* 2,000 Personal casualty loss on an asset held for five years* (casualty was in a Federally declared disaster area) 28,000 Interest expense on home mortgage 9,000 *Personal casualty losses exceed gains; therefore, all items are treated as ordinary items. Assume that a personal casualty loss means that the $100 floor already has been deducted. If an amount is zero, enter "0". If required, use the minus sign to indicate a negative AGI, taxable loss or an NOL.