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

question 35

Multiple Choice

CPA Associates,a cash-basis partnership with a calendar tax year,signs a contract for a 20-month subscription to an online tax research service,effective as of April 1.The firm pays the full $10,000 subscription bill on the April 1,2019 subscription start date.For 2019 the firm can deduct

• A)$10,000.
• B)$4,500.
• C)$5,500.
• D)$5,000.