CPA Associates, a Cash- Basis Partnership with a Calendar Tax

question 953

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, 2018 subscription start date. For 2018 the firm can deduct

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

---

Definitions:

Worker Skill

The expertise, abilities, and competencies that a worker possesses, which determine their capability to perform tasks efficiently and effectively.

Competitive Advantage

The attributes or conditions that allow a company to produce goods or services better or more cheaply than its competitors, leading to a favorable market position.

Transformation Process

The series of actions and operations that convert inputs into outputs, creating products or services in an organization.

Technology

The application of scientific knowledge for practical purposes, especially in industry.