Sandy is the owner of ABC Loan Company. On June 2, 2014, ABC loaned Randy $80,000. In 2015, Randy filed for bankruptcy. At that time, the bankruptcy court indicated that Randy's creditors could expect to receive 30 cents on the dollar. In August 2016 final settlement was made, and ABC received $20,000. ABC's policy is to deduct losses as soon as permitted. How much loss can ABC deduct and in which year?

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The Answer of Sandy is the owner of ABC Loan Company. On June 2, 2014, ABC loaned Randy $80,000. In 2015, Randy filed for bankruptcy. At that time, the bankruptcy court indicated that Randy's creditors could expect to receive 30 cents on the dollar. In August 2016 final settlement was made, and ABC received $20,000. ABC's policy is to deduct losses as soon as permitted. How much loss can ABC deduct and in which year?

Sandy Is the Owner of ABC Loan Company