Last Year,Abby Loaned Pat $10,000 as a Gesture of Their

question 104

Multiple Choice

Last year,Abby loaned Pat $10,000 as a gesture of their friendship.Although Pat had signed a note payable that contained interest payments and a maturity date,the loan had not been repaid this year when Pat died insolvent.For this year,assuming that the loan was bona fide,Abby should account for nonpayment of the loan as a(n)

• A)itemized deduction.
• B)ordinary loss.
• C)long-term capital loss.
• D)short-term capital loss.

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Definitions:

Parental Investment

signifies any investment by a parent in an individual offspring that increases the offspring's chance of surviving (and hence reproductive success) at the cost of the parent's ability to invest in other offspring.

Evolutionary Perspective

A theoretical approach in psychology and other sciences that explores how evolutionary theory informs our understanding of human behaviors and mental processes.

Surviving Offspring

Surviving offspring refers to the progeny of organisms that survive to adulthood and have the potential to reproduce.

High Social Status

A position of respect, prestige, or superiority in a society or group based on wealth, authority, or other factors.