Question 1: Nell, single and age 38, had the following income and expense items in 2008:
Nonbusiness bad debt $6,000
Business bad debt $2,000
Nonbusiness long-term capital gain $4,000
Nonbusiness short-term capital loss $3,000
Salary $40,000
Interest Income $1,000
Determine Nell's AGI for 2008
Question 2: Assume that in addition to the information in part a., Nell had the following items in 2008:
Personal casualty gain on an asset held for four months $10,000
Personal casualty loss on an asset held for two years $1,000
Determine Nell's AGI for 2008