All bad debts of a corporation are treated as business rather than nonbusiness bad debts.

Name: All bad debts of a corporation are treated as business rather than nonbusiness bad debts.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because bad debts arise from the normal course of business activities and are therefore considered business expenses. Nonbusiness bad debts, on the other hand, arise from non-business transactions like loans made to friends or family members and are treated differently for tax purposes.

All Bad Debts of a Corporation Are Treated as Business