In July of This Year, Sam Performs Financial Consulting Services

question 10

Multiple Choice

In July of this year, Sam performs financial consulting services for William. On August 1, Sam sends William a bill for $1,200. As of September 30, Sam had not heard from William. After repeated efforts to collect the fee, Sam discovers in November that William has left the state and cannot be found. If Sam is an accrual basis taxpayer, for the current year he can deduct

• A)$- 0 -
• B)A $800 ordinary loss
• C)A $1,200 ordinary loss
• D)A $1,200 short-term capital loss
• E)A $1,200 long-term capital loss

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