I:11-42 Economic Performance. In light of the economic performance requirement, how much is deductible by the following accrual-basis corporate taxpayers this year?

a. Camp Corporation sells products with a one-year warranty. Camp estimates that the warranty costs on products sold during this year will amount to $80,000. Camp performs

$38,000 of warranty work on products sold last year and $36,000 of warranty work on products sold this year.

b. Data Corporation agrees to pay $10,000 this year and $10,000 next year to a software developer. The developer completes all work on the software and delivers the product to Data this year.

c. Palm Corporation pays $5,000 to a supplier to guarantee delivery of raw materials.

The $5,000 is refundable if Palm decides not to acquire the materials.

d. This year North Corporation pays a $1,000 security deposit on space it rents for a new office. In addition, North pays current year rent of $18,000. The security deposit is refundable if the property is returned in good condition.