Adjusted gross income for the current year

Reference no: EM13129404

Tonya had the following items for last year:

Salary $40,000
Short-term capital gain 12,000
Nonbusiness bad debt (10,000)
Long-term capital loss (5,000)

For the current year, Tonya had the following items:

Salary $45,000
Collection of last year's bad debt 10,000

Determine Tonya's adjusted gross income for the current year.

I know that the income is limited to the tax benefit from the prior year, but I am unsure of the tax benefit of the prior year, whether you would use all the of $10,000 or if it's limited to the $3,000 capital loss limit.

Reference no: EM13129404

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