D, a country doctor, died suddenly. The doctor practiced as a sole proprietor using cash basis accounting. The decedents final return reported cash basis income and expenses on Schedule C (Form 1040). Ds former patients have continued to send checks in payment for services D performed. The landlord, phone company, and other creditors of his practice have sent their bills. The administrator of Ds estate should

A. include the checks as income upon receipt and deduct the bills as expenses when paid on the estate income tax return (Form 1041).

B treat the checks as nontaxable gifts and the bills as voidable because of Ds death.

C return the checks and bills to avoid burdening the decedents estate with the possible tax consequences.

D file an amended tax return (Form 1040X) to recognize the income and deductions to D because the decedents final return must use the accrual basis.