This Year, Yuan Started a Business Selling Computer Parts Both

question 76

Multiple Choice

This year, Yuan started a business selling computer parts both in store and online.He purchased $60,000 of goods during the year via credit card.His ending inventory was $9,000.For tax purposes, Yuan adopted the cash method and the treatment of inventory as deductible when purchased per his books.His deduction for inventory for the year is:

• A)$51,000.
• B)$60,000.
• C)$69,000.
• D)None of these.

Evaluate investment choices based on their potential tax benefits or liabilities.

Learn the importance of annual contributions and their effects on the future value of retirement savings.

Understand regulatory caps and limits on contributions to retirement accounts and their tax implications.

Understand the concept and importance of issues management in organizations.

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Definitions:

Indirect Advertising Expenses

Costs not directly associated with specific advertising campaigns but related to broader promotional activities, such as salaries of marketing staff or general promotional materials.

Gross Sales

The total sales amount without any deductions for discounts or returns.

Indirect Expenses

Costs not directly linked to the production of goods or services, such as administrative and marketing expenses.

Subjective

Based on personal opinions, interpretations, points of view, or emotions rather than objective facts.