Several years ago john johnson, who is in the lending business, loaned sara $30,000 to purchase an automobile to be used for personal purposes. in august of the current year, sara filed for bankruptcy, and john was notified that he could not expect to receive more than $4,000. as of the end of the current year, john has received $1,000 of the expected $4,000. john has contacted you about the possibility of taking a bad debt deduction for the current year. complete the letter to john that contains your advice as to whether he can claim a bad debt deduction for the current year.

On january 8, the end of the first weekly pay period of the year, regis company's payroll register showed that its employees earned $22,760 of office salaries and $70,840 of sales salaries. withholdings from the employees' salaries include fica social security taxes at the rate of 6.20%, fica medicare taxes at the rate of 1.45%, $13,260 of federal income taxes, $1,450 of medical insurance deductions, and $860 of union dues. no employee earned more than $7,000 in this first pay period. required: 1.1 calculate below the amounts for each of these four taxes of regis company. regis’s merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid to each employee. the federal unemployment tax rate is 0.60