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Taffy Products Uses the Accrual Method and Reports on a Calendar

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Taffy Products uses the accrual method and reports on a calendar year. On July 1 st of this year Taffy paid $48,000 for warehouse rent and $18,000 for insurance on the contents of its warehouse. The rent and insurance cover the next 12 months. What amount, if any, can Taffy deduct for rent and insurance this year?


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