Maria,who Is Single,had the Following Items for 2016

question 1

Essay

Maria,who is single,had the following items for 2016:
Salary
$80,000
Loss on sale of § 1244 small business stock acquired 3 years ago
(60,000)
Stock acquired 2 years ago became worthless during the year
(5,000)
Long-term capital gain
25,000
Nonbusiness bad debt
(15,000)
Casualty loss on property held 6 months
(6,000)
Casualty gain on property held 4 years
4,000
Determine Maria's adjusted gross income for 2016.

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Definitions:

Net Realizable Value

The estimated selling price of goods or assets in the ordinary course of business minus any costs involved in the sale or disposal process.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.

Direct Write-off Method

A method of accounting for bad debts that charges the amount directly to expense when it is determined to be uncollectible.