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17. Your client Kathy owns a small accounting practice. Kathy is a cash basis taxpayer. On December 26th of this year she buys office supplies

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17. Your client Kathy owns a small accounting practice. Kathy is a cash basis taxpayer. On December 26th of this year she buys office supplies of $500 that will last her for the rest of this year and all of next year. On December 27th of this year she buys a computer which is considered 179 property under the code. a. Kathy can deduct the computer this year but must capitalize the office supplies over the prescribed period. b. Kathy can deduct the office supplies this year but must capitalize the computer over the prescribed period. c. Kathy must capitalize both the computer and office supplies over the prescribed period. d. Kathy can deduct both the computer and office supplies this year

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