Question
Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of year 0. Indicate the amount of these
Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of year 0. Indicate the amount of these payments that she may deduct in year 0 under both the cash method of accounting and the accrual method of accounting. (Leave no answers blank. Enter zero if applicable.)
a. $1,500 for an accountant to evaluate the accounting system of Rebeccas business. The accountant spent three weeks in January of year 1 working on the evaluation.
b. $4,700 for new office furniture. The furniture was delivered on June, 15, year 1.
c. $3,100 for property taxes payable on her factory.
d. $2,280 for interest on a short-term bank loan relating to the period from December 1, year 0, through March 31, year 1
Deductible Amount | |
Cash method | |
Accrual method |
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