Jones,Inc,A Calendar-Year Taxpayer,is in the Air Conditioner Repair Business

question 73

Multiple Choice

Jones,Inc.,a calendar-year taxpayer,is in the air conditioner repair business.The business uses the cash method.In December of the current year,Jones charged $100 of supplies at Refrigeration,Inc.,(he will pay the credit card bill in January) and also purchased $600 of supplies at XYZ on open account (he will make a payment on the open account in January) .What is the amount that is deductible by Jones,Inc.,in the current year?

• A)$100
• B)$600
• C)$700
• D)The amounts must be capitalized and charged to expense as used.

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Definitions:

Specific Phobia

an intense, irrational fear of or aversion to a particular object, situation, or activity that poses little to no actual danger.

Intense Fear

A profound feeling of dread or terror, often triggered by perceived threats or dangerous situations.

Excoriation

A skin condition characterized by the repeated picking at one's own skin, often leading to sores and scars.

Compulsive Behavior

Repetitive, often ritualistic actions that an individual feels driven to perform, usually as a response to obsessive thoughts or to reduce anxiety.