Match the Proper Deduction Method with the Correct Expenditures

question 145

Multiple Choice

Match the proper deduction method with the correct expenditures.
-Premiums the insured taxpayer pays for life insurance

• A)Capitalized and amortized over a number of accounting periods
• B)Expensed in the period incurred
• C)Not deductible
• D)Can be capitalized and amortized or deductible depending on the amount of the expenditure

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Definitions:

Direct Materials

Ingredients that are specifically identifiable in the creation of a certain product.

Direct Labor-Hours

The broad sum of hours dedicated by workers directly in the manufacturing workflow.

Variable Overhead

Indirect production costs that vary with the level of output, such as utilities for a manufacturing plant.

Direct Materials

Raw materials that can be directly attributed to the production of finished goods.