In 2019,Grace Loaned Her Friend Paula $12,000 to Invest in Various

question 36

Multiple Choice

In 2019,Grace loaned her friend Paula $12,000 to invest in various stocks.Paula signed a note to repay the principal with interest.Unfortunately the market for that industry sector plunged,and Paula incurred large losses.In 2019,Paula declared personal bankruptcy and Grace was unable to collect any of her loan.Grace had no other gains or losses last year or this year.The result is

• A)Grace deducts a business bad debt of $12,000 in 2019.
• B)Grace deducts a $12,000 nonbusiness bad debt as a short-term capital loss in 2019.
• C)Grace deducts a $3,000 nonbusiness bad debt as a short-term capital loss in 2019 and carries $9,000 over to subsequent years.
• D)Grace deducts a business bad debt of $3,000 in 2019 and carries $9,000 over to subsequent years.

---

Definitions:

Competency-based Approach

A method that assesses individuals' skills and abilities, focusing on what they can do rather than what they know, often used in education and HR.

Trait Approach

A theory of leadership that suggests certain inherent personality traits and characteristics are conducive to effective leadership.

Skills Approach

A perspective on leadership that emphasizes the importance of developing specific, learnable abilities and competencies for effective leadership.

Style Approach

A leadership paradigm that emphasizes the significance of a leader's manner of interaction with followers, focusing on task-oriented and relationship-oriented behaviors.