In 2022, a corporation sells its business in an arm's length transaction for proceeds equal to FMV. At the time of the sale the business has accounts receivable of $123,000. The corporate vendor of the business and the purchaser agree that the realizable value of the receivables is $118,500. In 2021, the vendor had deducted a reserve for doubtful debts of $6,800. Which of the following statements is correct?

a. If no joint election is filed under ITA 22, the vendor will have an addition to business income of $2,300.

b. If no joint election is filed under ITA 22, the vendor will have an addition to business income of $6,800 and an allowable capital loss of $2,250. (This is the correct option but I would like to know the solution step-by-step. Thanks)

c. If a joint election is filed under ITA 22, the vendor will have a business deduction of $2,300.

d. If a joint election is filed under ITA 22, the vendor will have a business deduction of $4,500