Unformatted text preview: $12,250 Note 1: $2,700 is $75/month on a 3-year policy. $450 is six months of current year coverage (July through December). Note 2: $600 would be capitalized and included in the value of the restaurant to be built. Note 3: Fine is not allowed as a deduction on an income tax return. Note 4: $2,400 is a prepaid expense and is not deductible on the current year tax return. Solution prepared by Ken Milani, Professor, University of Notre Dame. Reprinted with permission. Property Insurance (150 + 450) Note 1 Professional fees (200 + 1,100) Note 2 Repairs and Maintenance Note 3 Advertising and Promotion Note 4 * Cost of Goods Sold ** Tax Calculation...
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- Fall '10
- Interest, Taxation in the United States