Ronald Is a Cash Method Taxpayer Who Made the Following

question 93

Multiple Choice

Ronald is a cash method taxpayer who made the following expenditures this year. Which expenditure is completely deductible in this period as a business expense?

• A) $4,000 for rent on his office that covers the next 24 months.
• B) $3,000 for a new watch for the mayor to keep "good relations" with city hall.
• C) $2,500 for professional hockey tickets distributed to a customer to generate "goodwill" for his business.
• D)$55 to collect an account receivable from a customer who has failed to pay for services rendered.
• E)None of these

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