Sergio Purchases $3,000-Worth of Supplies from a Local Vendor

question 146

Multiple Choice

Sergio purchases $3,000-worth of supplies from a local vendor.The supplies are delivered on April 1,2013.The supplies are fully used up on December 31,2013.Because of unusual circumstances,a bill for the supplies arrives from the vendor on February 1,2014,and is promptly paid.When can Sergio deduct the expenses?
I.In 2013,if he is an accrual basis taxpayer.
II.In 2013,if he is a cash basis taxpayer.

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Court Proceedings

The process of adjudicating legal disputes and administering justice through formal sessions in a court of law.

Voir Dire

Voir dire is a legal process in which attorneys question prospective jurors to determine any biases or inability to serve impartially in a jury.

Objection

A legal term referring to a statement by an attorney during a trial, disagreeing with a method or evidence presented by the opposition.

In Limine

A legal term referring to a procedural motion made to the court, typically before a trial begins, to request that certain evidence be deemed inadmissible or not shown to the jury.