Lourdes,a Sole Proprietor,collected $8,650 on November 21,2016 on Some of Her

Multiple Choice

Lourdes,a sole proprietor,collected $8,650 on November 21,2016 on some of her outstanding receivables.Her basis in these receivables was $0.What is the gain or loss Lourdes recognizes for 2016?

A) a short-term loss as the FMV is greater than the payments received on the receivables.
B) a short-term gain as the payments are from receivables that are always considered short-term.
C) no gain or loss as the payments are within the normal course of business.
D) an ordinary gain because the receivables had a FMV greater than the basis of the receivables.