11 7 Assignment Print View

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2017. 11. 7. Assignment Print View 6/7 11. Award: 0.83 out of 0.83 points c. What amount of the cost of the repairs can Matt deduct in year 0 if he uses the accrual method and he expects the repairs to be done by early February? Deductible amount \$ 2,000 References Problem Learning Objective: 09-05 Identify and describe accounting methods available to businesses and apply cash and accrual methods to determine business income and expense deductions. c. What amount of the cost of the repairs can Matt deduct in year 0 if he uses the accrual method and he expects the repairs to be done by early February? \$ Deductible amount 2,000 Explanation: c. \$2,000 deductible in year 0 (the year of payment). Because Matt paid for the service in year 0 and he can reasonably expect that the work will be done within 3 and ½ months of payment he is allowed to deduct the payment in year 0 under the accrual method.
2017. 11. 7. Assignment Print View 7/7 12. Award: 0.87 out of 0.87 points d. What amount of the cost of the repairs can Matt deduct in year 0 if he uses the cash method of accounting and he expects the repairs to be done by early February? Deductible amount \$ 2,000 References Problem Learning Objective: 09-05 Identify and describe accounting methods available to businesses and apply cash and accrual methods to determine business income and expense deductions. d. What amount of the cost of the repairs can Matt deduct in year 0 if he uses the cash method of accounting and he expects the repairs to be done by early February? \$ Deductible amount 2,000 Explanation: d. The \$2,000 cost of repairs is deductible in year 0 because he meets the 12-month rule.

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• Spring '12
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