Taffy Products Uses the Accrual Method and Reports on a Calendar

question 69

Essay

Taffy Products uses the accrual method and reports on a calendar year. On July 1^st of this year Taffy paid $48,000 for warehouse rent and $18,000 for insurance on the contents of their warehouse. The rent and insurance covers the next 12 months. What amount, if any, can Taffy deduct for rent and insurance this year?

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Definitions:

Negative Announcement

A communication that delivers bad news, unfavorable decisions, or adverse information to an audience.

Indirect

A communication approach that is not straightforward or direct, often used to soften a message or to be polite.

Tactful

Showing sensitivity and consideration when dealing with difficult or delicate situations, often to avoid offense.

Claim Message

Communication that asserts a request for action or redress typically in the context of a business or legal matter.