RollerQueens Inc

question 34

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

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Definitions:

Options

Choices or alternatives available in any situation, allowing for decision-making based on preferences, needs, or desired outcomes.

Status Quo Bias

A preference for the current state of affairs, with changes perceived as a loss.

Omission Bias

A cognitive bias that involves the tendency to judge harmful actions as worse, or less moral, than equally harmful omissions (inactions).

Decisions

The method of selecting options through recognizing a decision, collecting information, and evaluating different solutions.