During 2018, an individual sells his incorporated business for its fair market value. At the time of the sale the business has accounts receivable of $123,000. The vendor of the business and the purchaser agree on a fair market value for these receivables of $118,500. In 2017, the vendor had deducted a reserve for estimated bad debts of $6,800. Which of the following statements is correct? 

A. If no election is made, the vendor will have an addition to net business income for tax purposes of $2,300. 

B. If no election is made, the vendor will have an addition to net business income for tax purposes of $4,550 .

C. If an election is made under ITA 22, the vendor will have a deduction in the determination of net business income for tax purposes of $2,300.  

D. If an election is made under ITA 22, the vendor will have a deduction in the determination of net business income for tax purposes of $4,500.