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Business, 28.05.2020 03:57 sarahidan

Taj operates a sole proprietorship, maintaining the business records under the cash-basis method of accounting. Taj performs services for a client and sends the client a bill for $12,000. Six months later, before payment is received by Taj, the client files bankruptcy, with no assets available for unsecured creditors such as Taj. Taj will deduct A) $12,000 ordinary loss. B) $3,000 long-term capital loss. C) $3,000 short-term capital loss. D) $0.

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