Taj Operates a Sole Proprietorship,maintaining the Business Records Under the Cash-Basis

question 85

Multiple Choice

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.

---

Definitions:

Physical Maturation

The process of reaching physical and biological growth and development, eventually achieving full adult size and functional capability.

Zone of Proximal Development

A concept in education and psychology referring to the difference between what a learner can do without help and what they can achieve with guidance.

Challenging Tasks

Tasks or activities that require significant effort and skill beyond current capabilities, promoting learning and development.

Sensitive Periods

Specific times during early childhood development when the human brain is particularly receptive to acquiring certain skills or knowledge.