Eaton Inc. is a calendar year, cash basis taxpayer. On October 1, 2019, Eaton paid $4,800 to a security firm for night-time and weekend security services for the 24-month period beginning with October. Which of the following is true?
A. As a cash basis taxpayer, Eaton can deduct the $4,800 expense in 2019.
B. Eaton can deduct $600 in 2019, $2,400 in 2020, and $1,800 in 2021.
C. Eaton can deduct $600 in 2019, and the remaining $4,200 in 2020.
D. None of the above is true.
Answer: B
You might also like to view...
Why is it important to assess your own understanding of cultural diversity as a public speaker?
What will be an ideal response?
Courts generally recognize that administrative inspections differ from searches in
criminal cases for each of the following reasons except: a. agencies, being executive in nature, are afforded privileges that allow them to circumvent many rules in order to conduct their business efficiently b. administrative searches usually do not have the purpose of securing evidence ofcriminal activities c. agencies in today's complex society must be given broad authority to enforce their mandates d. there is a lower expectation of privacy in business premises
Two methods of estimating uncollectible receivables are ________
A) the allowance method and the amortization method B) the aging-of-accounts-receivable method and the percent-of-sales method C) the gross-up method and the direct write-off method D) the direct write-off method and the percent-of-completion method
Leah is an award-winning fiction writer. She works out of her apartment. She recently purchased a new desk in which to store her manuscripts and for use when typing up stories for publication. Leah is part of the business market for the desk manufacturer.
Answer the following statement true (T) or false (F)