Xeno Corporation purchased supplies from Kimbo Company in 2018. The total invoice was for ($ 20,000), but
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Xeno Corporation purchased supplies from Kimbo Company in 2018. The total invoice was for \(\$ 20,000\), but Xeno claimed that only one-half of the order was received and paid only \(\$ 10,000\) in 2018 . Both parties honestly disputed the bill and Xeno refused to pay the contested amount. They went to court and a judgment requiring Xeno to pay an additional \(\$ 5,000\) was issued in 2019 . How should Xeno report this expense?
a. \(\$ 10,000\) in 2018 and \(\$ 5,000\) in 2019
b. \(\$ 15,000\) in 2018
c. \(\$ 15,000\) in 2019
d. \(\$ 20,000\) in 2018 and \(\$ 5,000\) of income in 2019
e. None of the above
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Related Book For
CCH Federal Taxation 2019 Comprehensive Topics
ISBN: 9780808049081
2019 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
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