Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in...
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Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of year 0. Indicate the amount of these payments that she may deduct in year 0 under both the cash method of accounting and the accrual method of accounting. (Leave no answers blank. Enter zero if applicable.) a. $4,900 for an accountant to evaluate the accounting system of Rebecca's business. The accountant spent three weeks in January of year 1 working on the evaluation. Deductible Amount Cash method Accrual method b. $2,400 for new office furniture. The furniture was delivered on March, 15, year 1. Deductible Amount Cash method Accrual method c. $3,200 for property taxes payable on her factory. Deductible Amount Cash method Accrual method d. $1,440 for interest on a short-term bank loan relating to the period from November 1, year 0, through February 28, year 1. Deductible Amount Cash method Accrual method Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of year 0. Indicate the amount of these payments that she may deduct in year 0 under both the cash method of accounting and the accrual method of accounting. (Leave no answers blank. Enter zero if applicable.) a. $4,900 for an accountant to evaluate the accounting system of Rebecca's business. The accountant spent three weeks in January of year 1 working on the evaluation. Deductible Amount Cash method Accrual method b. $2,400 for new office furniture. The furniture was delivered on March, 15, year 1. Deductible Amount Cash method Accrual method c. $3,200 for property taxes payable on her factory. Deductible Amount Cash method Accrual method d. $1,440 for interest on a short-term bank loan relating to the period from November 1, year 0, through February 28, year 1. Deductible Amount Cash method Accrual method
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Answer rating: 100% (QA)
Answer a4900 under the cash method Likely 4900 under the accrual method Rebecca paid for the account... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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