Martha,an accrual-method taxpayer,has an accounting practice.In 2016,she performs tax analyses for Arnold and sends him an invoice for $10,000.In 2017,Martha sells her practice and all accounts to David.Arnold's debt becomes worthless that year after David has purchased the practice.The result is

Question

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C)Since David acquired the account upon acquiring the business,he is entitled to a business bad debt deduction because the debt was incurred in the trade or business in which David is currently engaged.

Martha,an Accrual-Method Taxpayer,has an Accounting Practice