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Frank Loaned Emma $5,000 in 2012 with the Agreement That

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Frank loaned Emma $5,000 in 2012 with the agreement that the loan would be repaid in three years.In 2013,Emma filed for bankruptcy and based on available information from the bankruptcy court,it was estimated that Frank could expect to receive $.65 on the dollar.In 2014,final settlement was made and Frank received $600.
a.Assuming the loan is a business bad debt,what is the amount of and the nature of Frank's deduction in 2013?
b.Assuming the loan is a business bad debt,what is the amount of and the nature of Frank's deduction in 2014?
c.Assuming instead that the loan is a nonbusiness bad debt,what is the amount of and the nature of Frank's deduction in 2013 and 2014?


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