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PamelloInc. an engineering consulting firm, uses the cash method of accounting and is a calendar year taxpayer. Read the requirement Compute the amount of Pamello's

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PamelloInc. an engineering consulting firm, uses the cash method of accounting and is a calendar year taxpayer. Read the requirement Compute the amount of Pamello's current year deductions for the following transactions: (Enter a "0" if no current year deduction is allowed.) a. On November 1 of the current year, it entered into a lease to rent some office space for five years. The lease agreement states that the lease payments are $12,000 per year, payable in advance each November 1 for the following 12-month period. Under the terms of the lease, Pamello is required to pay a $5,000 deposit, refundable upon the termination of the lease The deduction amount for transaction a is b. On December 1 of the current year, Pamello also renewed its malpractice insurance, paying $18,000 for the threeyear contract The deduction amount for transaction bis c. On December 31 of the current year, Pamello mailed out a check for $5,000 for dratting services performed for it during the Current year by an individual who lives in another city The deduction amount for transaction is d. On December 31 the firm received a shipment of $700 worth of stationery and other office supplies Pamello has an open charge account with the office supply company which bills the firm monthly for charges made during the year The doduction amount for transaction d is d. On December 31 the firm received a shipment of $700 worth of stationery and other office supplies. Pamello has an open charge account with the office supply company, which bills the firm monthly for charges made during the year The deduction amount for transaction d is e. On December 31, Pamello picked up some work that a local printing company had done for it which amounted to $1.000 The firm charged the $1000 with its corporate credit card The deduction amount for transaction is

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