During 2020, Sunrise Corporation provided $100,000 of services on account to a client, Sunset

Corporation. Because of financial difficulties Sunset experienced related to operating in a Covid-19

environment, Sunset did not pay the amount it owes to Sunrise. After Sunrise determined that it will

not be able to collect any money from Sunset, Sunrise writes-off the account. If Sunrise uses the

cash method, show your calculation of the amount (if any) that Sunrise can deduct this year as a bad

debt expense for tax purposes explain your reasoning. Next, assume Sunrise uses the accrual

method. Show your calculation of the amount (if any) that Sunrise can deduct this year as a bad debt

expense for tax purposes explain your reasoning