Elcox Company, a calendar year, cash basis taxpayer, paid a $6,340 premium to purchase a casualty insurance policy with a 36-month term. Elcox can deduct $6,340 in the year of payment.
Answer the following statement true (T) or false (F)
False
Under the 12-month rule, Elcox must deduct the $6,340 expense over the 36-month term of the payment.
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Which of the following items would be considered a cash equivalent if it was held at the balance sheet date?
a. U.S. Treasury bill purchased when there were 90 days until maturity. b. Commercial paper with a 6-month maturity which was purchased at the issue date. c. The common stock of a company traded on the New York Stock Exchange which was purchased 30 days before the balance sheet date. d. U.S. Treasury note which matures 2 years after it is issued and which was purchased 4 months before the balance sheet date.
Estimating total demand is a function of three separate purchase situations, which are ________ purchases.
A. new, repeat, and impulse B. new, repeat, and replacement C. new, impulse, and replacement D. new, ideal, and impulse E. new, convenient, and impulse
Inventory that is to be used to cover demand over the period between purchases or production runs is referred to as?
a. Cycle b. Hedge c. Safety stocks d. Transportation
A "sale" of software generally involves only a right to use the software.
Answer the following statement true (T) or false (F)