On Dec. 15, 2019, Julias Service Station, an accrual method taxpayer, prepaid $4,000 worth of deductible interest on a business loan. The interest wont accrue until 2020. Julias Service Station will be displayed for the first time at a trade show in July 2020. On Dec. 16, 2019, Julias prepaid the $8,000 trade show booth rental expense. The payment isnt due until May 2020, and the use of the booth will occur in July 2020. In addition, On Dec. 28, 2019, Eds Equipment repaired some equipment in Julias business and billed Julias $2,000. Julias received the invoice on Dec. 28, 2019, and paid the $2,000 invoice on Jan. 29, 2020. How much of the $14,000 in deductible business expenses may Julias Service Station deduct in 2019?

The answer is not 12000 see the same problem that was posted with 12000 is incorrect.