Reilly owns and operates an accounting practice as a sole proprietorship. For tax reporting, Reilly uses the accrual method of accounting. Last year, Reilly prepared a tax return for a client and billed the client $600. The client did not pay and has recently disappeared. The reminder notices that Reilly's secretary had sent to the client have been returned with no forwarding address. How should this bad debt be treated for income tax purposes? No bad debt deduction is permitted.

		A. No bad debt deduction is permitted.
B.		Reilly may deduct $600 from his business income.
C.		Reilly may deduct $600 as a short-term capital loss.
D		Reilly may deduct $600 as a long-term capital loss.