78. Larry owns a hardware business and several customers have outstanding bad debts with him. Which of the folowing is a false statement regarding bad debts from sales or service? a) Bad debts are deductible when debts become totally worthless. b) Bad debts cannot be deducted under the cash method of accounting unless the amount was previously included in income c) Bad debts are a cost of doing business d) Bad debts are never deductible 79. As a business owner, Larry has several different types of interest he must pay. Which of the following types of interest should be omitted as a deductible expense? Mortgage interest b) a) Interest capitalization c) Interest on business purchases d) Interest paid on personal loans 80. Madison is in her first year of college. Madison's parents continue to claim her as a dependent since she is a full-time student and under age 24. Her parents paid the following amounts for quaified tuition in 2016: She lives with her parents and attends a local college .$2,700 in March for the summer semes ter (2016) $3,500 in June for the fal semester (2016) .$3,300 in December for the spring semester (2017) What amount of qualified tuition will Madison be allowed to use in calculating her 2016 American Opportunity Credit on her tax return? a) $0 b) $2.700 c) $6,200 d) $9,500