Martha, an accrual-method taxpayer, has an accounting practice. In 2017, she performs tax analyses for Arnold and sends him an invoice for $10,000. In 2018, Martha sells her practice and all accounts to David. Arnold's debt becomes worthless that year after David has purchased the practice. The result is
A. David deducts a business bad debt in 2018.
B. Martha deducts a business bad debt in 2018.
C. Martha deducts a nonbusiness bad debt in 2018.
D. David deducts a nonbusiness bad debt in 2018.
Answer: A
You might also like to view...
Answer the following statements true (T) or false (F)
1.Disclosing personal information rarely carries risk. 2.Relationships worth having are going to evolve and we need to respond to those changes. 3.Relationships have both internal and external tensions. 4.Metacommunication is important to a relationship’s health. 5.As a relationship’s strength grows, partners become more secure and feel more pressure to reciprocate every relationship contribution.
Net income can be used to assess a company's progress in meeting the goal of profitability
Indicate whether the statement is true or false
Where did he term propaganda originate?
A) with the Creel Committee during World War II B) with Pope Gregory XV, who established a college in 17th Century Rome to spread the word about Catholicism C) with the Sophists, who walked around telling citizens of Rome who to vote for D) with the farmers who grew grapes in ancient Italy
MPR professionals that generate blogs and podcasts for their clients are more likely to send digital press kits to connectors than paper press kits
Indicate whether the statement is true or false