Leigh Pays the Following Legal and Accounting Fees During the Year

question 111

Multiple Choice

Leigh pays the following legal and accounting fees during the year: What is the total amount of her for AGI deduction for these fees?

• A)$10,800
• B)$14,000
• C)$15,000
• D)$20,000

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Definitions:

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a certain period.

Long-Term Debt

Financial obligations of a company that are due more than one year in the future, often used for significant projects or to purchase assets.

Debt-Equity Ratio

A ratio indicating a firm's financial leverage, determined by dividing its total debts by its shareholder equity.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by dividing total net credit sales by the average accounts receivable.