Dr.S has done extremely well financially.Several years ago, his good friend T started a small amusement park with such attractions as a water slide and a miniature golf course.T persuaded S to lend his new business $5,000, which he would repay to S in three years with 15 percent interest annually.The note came due this year and T was unable to repay because his business had failed.In light of the business nature of this debt, Dr.S may treat the bad debt as an ordinary loss.

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The Answer of Dr.S has done extremely well financially.Several years ago, his good friend T started a small amusement park with such attractions as a water slide and a miniature golf course.T persuaded S to lend his new business $5,000, which he would repay to S in three years with 15 percent interest annually.The note came due this year and T was unable to repay because his business had failed.In light of the business nature of this debt, Dr.S may treat the bad debt as an ordinary loss.

DrS Has Done Extremely Well Financially