CPA Associates,a Cash Basis Partnership with a Calendar Tax Year,signs

question 56

Multiple Choice

CPA Associates,a cash basis partnership with a calendar tax year,signs a contract for a 30-month subscription to an on-line tax research service,effective as of November 1.The firm pays the full $15,000 subscription bill on the November 1,2016 subscription start date.For 2016 the firm can deduct

• A)$15,000.
• B)$1,000.
• C)$7,500.
• D)$2,000.

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Definitions:

Bullwhip Effect

A phenomenon in supply chains where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand upstream, often leading to inefficiency and increased costs.

Lot Sizes

The quantity of goods processed, produced, purchased, or delivered in a single batch or order, affecting manufacturing efficiency and inventory management.

Operational Improvements

Enhancements or optimizations made to the processes and procedures of an organization to increase efficacy, efficiency, and overall performance.

Transportation Costs

Expenses incurred in moving goods from one location to another, including freight charges, fuel costs, and maintenance.