Martha,an Accrual-Method Taxpayer,has an Accounting Practice

question 51

Multiple Choice

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.

---

Definitions:

Neural Change

Alterations in the structure or function of the nervous system as a result of growth, learning, or experience.

Behavioral Symptoms

Observable actions or behaviors exhibited by an individual that may indicate the presence of a neurological or psychiatric condition.

Neuronal Plasticity

The capacity of neurons and neural networks in the brain to change their connections and behavior in response to new information, sensory stimulation, development, damage, or dysfunction.

Compensatory Plasticity

The brain's ability to adjust and reorganize its functionalities in response to injury, loss, or developmental issues.