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Petersburg, Inc., an engineering consulting firm, uses the cash method of accounting and is a calendar year taxpayer. Read the requirement. Compute the amount of

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Petersburg, Inc., an engineering consulting firm, uses the cash method of accounting and is a calendar year taxpayer. Read the requirement. Compute the amount of Petersburg'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 $9,600 per year, payable in advance each November 1 for the following 12 -month period. Under the terms of the lease, Petersburg is required to pay a $7,000 deposit, refundable upon the termination of the lease. The deduction amount for transaction a. is Compute the amount of Petersburg's current year deductions for the following transactions: 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 $9,600 per year, payable in advance each November 1 for the following 12 -month period. Under the terms of the lease, Petersburg is required to pay a $7,000 deposit, refundable upon the termination of the lease. b. On December 1 of the current year, Petersburg also renewed its malpractice insurance, paying $21,600 for the three-year contract. c. On December 31 of the current year, Petersburg mailed out a chdck for $3,500 for drafting services performed for it during the current year by an individual who lives in another city. d. On December 31, the firm received a shipment of $1,200 worth of stationery and other office supplies. Petersburg has an open charge account with the office supply company, which bills the firm monthly for charges made during the year. e. On December 31, Petersburg picked up some work that a local printing company had done for it, which amounted to $900. The firm charged the $900 with its corporate credit card. (Enter a " 0 " if no current year deduction is allowed.)

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