Taj Operates a Sole Proprietorship, Maintaining the Business Records Under

Taj operates a sole proprietorship, maintaining the business records under the cash- basis method of accounting. Taj performs services for a client and sends the client a bill for $12,000. Six months later, before payment is received by Taj, the client files bankruptcy, with no assets available for unsecured creditors such as Taj. Taj will deduct

A) $0.
B) $3,000 long- term capital loss.
C) $3,000 short- term capital loss.
D) $12,000 ordinary loss.