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Business, 28.05.2020 04:00 eyanil17

Martha, an accrual-method taxpayer, has an accounting practice. In 2015, she performs tax analyses for Arnold and sends him an invoice for $10,000. In 2016, 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) Martha deducts a nonbusiness bad debt in 2016. B) Martha deducts a business bad debt in 2016. C) David deducts a business bad debt in 2016. D) David deducts a nonbusiness bad debt in 2016.

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