Clyde Operates a Sole Proprietorship Using the Cash Method

question 72

Multiple Choice

Clyde operates a sole proprietorship using the cash method. This year Clyde made the following expenditures: $480 to U.S. Bank for 12 months of interest accruing on a business loan from September 1^st of this year through August 31^st of next year.
$600 for 12 months of property insurance beginning on July 1 of this year.
What is the maximum amount Clyde can deduct this year?

• A) $760
• B) $600
• C) $480
• D) $160
• E) $360

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Definitions:

Secularism

The principle of separating the government institutions and the persons mandated to represent the state from religious institutions and religious dignitaries.

Ultimate Meaning

The deepest significance or purpose of existence, often explored in philosophical, spiritual, and religious contexts.

Consensual Unit

A social or familial group formed based on mutual agreement or consent, rather than through legal, blood, or traditional binds.

Economic Cooperation

A type of arrangement in which parties agree to work together towards common or mutual economic goals, often including trade agreements, shared investments, and collaborative projects.