Dara deducts $$1,000$ from her taxable income on last year's tax return due to a

bad debt. This year she receives $$600$ from that debt. If Dara uses the

basis, she must include

as taxable income this year.

Accrual, $$0$

Accrual, $$400$

Accrual, $$600$

Accrual, $$1,000$

Cash, $$0$

Cash, $$400$

Cash, $$600$

Cash, $$1,000$

None of the above