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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Definitions:

Motor Neurons

Neurons that transmit signals from the spinal cord to muscles, effectively converting neural messages into muscle movements.

Cervical

Cervical pertains to the neck region in the human body or the part of the spine known as the cervical spine, which comprises the seven vertebrae connecting the skull to the thoracic spine.

Lumbar

Referring to the lower part of the spine, specifically the five vertebrae between the rib cage and the pelvis.