Clyde Operates a Sole Proprietorship Using the Cash Method

question 47

Multiple Choice

Clyde operates a sole proprietorship using the cash method. This year Clyde made the following expenditures:
$480 to U.S. Bank for 12 months of interest accruing on a business loan from September 1ˢᵗ of this year through August 31ˢᵗ of next year.
$600 for 12 months of property insurance beginning on July 1 of this year.
What is the maximum amount Clyde can deduct this year?

• A) $760
• B) $600
• C) $480
• D) $160
• E) $360

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Definitions:

Sequencer Program

A computer program designed to manage the execution order of other programs or instructions in a sequence.

Sequencer Instructions

Instructions used in PLC programming to execute a series of operations or control a process step by step.

Retentive

Pertaining to a device or process that retains its state or data even after power is lost or reset.

Program Modification

The process of making changes or updates to software or a set of instructions to correct errors or enhance functionality.