10. John operates a manufacturing business for the whole year. This year John's business income for the year is $364,000. John is on the accrual method uses a calendar year-end. John need to adjust his income for the following items associated with his business: A contributed to a political campaign to help the business get a contract A customer won a cash prize in a business contest which will be paid next year Estimated warranty liability at year-end is (based on this year's sales) Cost of goods sold Collected a prepayment for good to be delivered next year A delivery truck was partially damage, the insurance check was for (Basis $5,000, value before $8,000, value after $5,000) Traffic ticket Employee's wages earned in December and will be paid in January $ 1,700 2,500 9,000 75,000 12,000 4,000 125 15,000 What expenses can he deduct for the current year