Martha,an Accrual Method Taxpayer,has an Accounting Practice

Multiple Choice

Martha,an accrual method taxpayer,has an accounting practice.In 2018,she performs tax analyses for Arnold and sends him an invoice for $10,000.In 2019,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

A) Martha deducts a nonbusiness bad debt in 2019.
B) Martha deducts a business bad debt in 2019.
C) David deducts a business bad debt in 2019.
D) David deducts a nonbusiness bad debt in 2019.