QUESTION 15

Brillo Company uses the calendar year and the cash method of accounting. On December 29, 2018, Brillo made the following cash payment. To what extent can Brillo deduct the payment in 2018?

$50,000 for a two-year office lease beginning on February 1, 2019?

$79,000 of inventory items held for sale to customers?

$1,800 to purchase a new refrigerator for the employees lounge. The refrigerator was delivered on January 8, 2019?

$4,800 retainer to a consultant who spent three weeks in January 2019 analyzing Brillos internal control system?

$22,300 property tax to the local government for the first six months of 2019?