A taxpayer uses an allowance method (i.e., aging method) of calculating bad debt expense for purposes of the business' financial statements. For income tax purposes, she will also use the allowance method to calculate the bad debt deduction.

True

False

Beth and Bob are married entrepreneurs. Beth has a start up sole proprietorship in which she works long hours. This year the business generated $500,000 of revenues and $800,000 of deductible business expenses. Bob is a partner in a new partnership, also working long hours. His share of the partnership loss for the year is $275,000. Fortunately, they both have trust funds so they are receiving $700,000 of taxable interest income and dividends in 2019. Due to this year's results, Beth and Bob will have an NOL carryover of

A.$0.

B.$65,000.

C.$325,000.

D.$575,000.