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Bob owns a collection agency. He purchases uncollected accounts receivable from other businesses at 60% of their face value and then attempts to collect these accounts. During the current year, Bob collected $60,000 on an account with a face value of $80,000. Determine the amount of Bob's bad debt deduction. On May 9, 2014, Calvin acquired 250 shares of stock in Aero Corporation, a new startup company, for $68, 750. Calvin acquired the stock directly from Aero, and it is classified as 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2016, Calvin sold all of his Aero stock for $7,000. Assuming that Calvin is single, determine his tax consequences as a result of this sale. Mary's diamond ring was stolen in 2015. She originally paid $8,000 for the ring, but it was worth considerably more at the time of the theft. Mary filed an insurance claim for the stolen ring, but the claim was denied. Because the insurance claim was denied, Mary took a casualty loss for the stolen ring on her 2015 tax return. In 2015, Mary had AGI of $40,000. In 2016, the insurance company had a "change of heart" and sent Mary a check for $5,000 for the stolen ring. Determine the proper tax treatment of the $5,000 Mary received from the insurance company in 2016

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