RollerQueens Inc

question 1878

Multiple Choice

RollerQueens Inc., a calendar- year accrual method taxpayer, enters into a contract each September with a cleaning service to clean the arena after each game during the team's October through March season. Under the criteria of the economic performance test, the RollerQueens Inc.'s deduction for cleaning expense

• A) is not allowed until payment is made.
• B) must be amortized over the contract period.
• C) is not allowed until the cleaning service contract is fully satisfied in the following year.
• D) is allowed in full in the year RollerQueens Inc. and the cleaning service enter into the contract.

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Definitions:

Insider Trading

Using inside information to either cheat the corporation or take unfair advantage of corporate outsiders.

Material

The substance or substances from which a thing is or can be made, often used in contexts involving physical objects or the fabric of physical, tangible items.

Nonpublic

Information or entities not available or accessible to the general population, often restricted due to privacy or confidentiality considerations.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly voting rights.