23. The economic performance test is waived and the year-end accruals can be deducted if:

Group of answer choices

a. The item is recurring in nature and is treated consistently by the taxpayer

b. The obligation exists and the amount of the liability can be reasonably estimated

c. Economic performance occurs within a reasonable period (but not later than 8 months after the close of the taxable year)

d. Either the accrued item is not material, or accruing it results in a better matching of revenues and expenses

e. All of the above are true

Kay, an accrual basis taxpayer, was short of cash and did not pay her December last years maintenance bill until this year. Which of the following statements is correct?

Group of answer choices

a. If the maintenance bill is paid by August 15, this year, it can be deducted on this years federal return.

b. If the maintenance bill is paid at any time this year, it must be deducted on this years federal return.

c. Regardless of when the maintenance bill is paid, it should be deducted on last years federal return.

d. If the maintenance bill is paid on October 14, this year, it can be deducted on this years federal return.

e. None of the above