In Year 1, Braid Corporation, a Calendar-Year Cash-Basis Corporation, Bought

question 85

Essay

In year 1, Braid Corporation, a calendar-year cash-basis corporation, bought office supplies for the next six months in October for $4,500, paid $6,000 for a three-year insurance policy beginning November 1, and borrowed $200,000 on a five-year 6 percent note receiving proceeds of $198,000 on December 1. What is Braid Corporation's total expense deduction in year 1 for these transactions?

---

Definitions:

Ambivalent

Experiencing conflicting emotions or thoughts towards a person or situation.

Acceptance-of-fate

The process of recognizing and resigning oneself to the outcomes of life without attempt to change or challenge them.

Planners

Individuals or tools engaged in the process of outlining strategies or actions for future activities.

Americans

Residents or citizens of the United States of America.