In 2015, Gerald loaned Main Street Bakery $55,000. In 2016, he learned that he would probably receiv

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In 2015, Gerald loaned Main Street Bakery $55,000. In 2016, he learned that he would probably receive only $6,400 of the loan. In 2017, Gerald received $3,000 in final settlement of the loan. Calculate Gerald’s possible deductions with respect to the loan for 2015, 2016, and 2017.

2015:

2016:

2017:

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