Peggy is in the business of purchasing accounts receivable from businesses at a discount and then collecting them. Last year, she purchased a $30,000 account receivable for $25,000. This year, the account was settled for $25,000. How much loss can Peggy deduct and in which year?
A. $-0- for the current year.
B. $5,000 for the prior year.
C. $5,000 for the current year.
D. $5,000 for the prior year and $5,000 for the current year.