Jones,Inc,A Calendar-Year Taxpayer,is in the Air Conditioner Repair Business

question 73

Multiple Choice

Jones,Inc.,a calendar-year taxpayer,is in the air conditioner repair business.The business uses the cash method.In December of the current year,Jones charged $100 of supplies at Refrigeration,Inc.,(he will pay the credit card bill in January) and also purchased $600 of supplies at XYZ on open account (he will make a payment on the open account in January) .What is the amount that is deductible by Jones,Inc.,in the current year?

• A)$100
• B)$600
• C)$700
• D)The amounts must be capitalized and charged to expense as used.

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Definitions:

Unsaturated Triglyceride

A type of triglyceride (a fat or oil) with at least one double bond in the fatty acid chains, making it less dense and typically liquid at room temperature.

Lauric Acid

A saturated fatty acid with a 12-carbon chain commonly found in coconut oil and palm kernel oil.

Triglyceride

A type of fat (or lipid) that is found in the blood, composed of one molecule of glycerol bonded to three fatty acids.

Melting Point

The temperature at which a substance changes from a solid to a liquid at atmospheric pressure.