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

Option D. $0

Explanation:

The reason is that Taj will have to recognize a bad debt expense of $12,000 which would decrease the receivable with the same amount.

The entry would be:

Dr Bad Debt Expense $12,000

Cr Accounts Receivables    $12,000

This means that the Taj will not reconize loss, all he will do is pass a bad debt expense entry. So the correct answer is option D.

Option D

Explanation: In simple words, those research whose subject are not humans are called not human subject researches. Although humans could be used as a source of information for conducting research and gathering information,but the research revolves around some other object or phenomenon.

In the given case, candidate is planning to research on the junk food availability in the market and is collecting information from local stores owned by humans.

Hence from the above we can conclude that the correct option is D.