20. Morris Day, CPA, reports on the cash basis. In March 2019, Day billed a client $3,000 for accounting services rendered in connection with the client's divorce settlement. No part of the $3,000 fee was ever paid. In July 2020, the client went bankrupt and the $3,000 obligation became totally worthless. What loss can Day deduct on his 2020 tax return? a. $0 b. $3,000 short-term capital loss c. $3,000 business bad debt d. $3,000 nonbusiness bad debt 21. During the 2020 holiday season, Pale Corp. gave business gifts to 17 customers. These gifts, which were not of an advertising nature, had the following fair market values: a. 4 at $10 each b. 4 at $25 each 4 at $50 each d. 5 at $100 each How much of these gifts was deductible as a business expense for 2020? C. a. $840 b. $365 c. $140 d. $0