McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 71

Rebecca is a calendar year taxpayer who operates a business. She made the following business-related expenditures in December of year 0. Indicate the amount of these payments that she may deduct in year 0 under both the cash method of accounting and the accrual method of accounting.
a. $2,000 for an accountant to evaluate the accounting system of Rebecca's business. The accountant spent three weeks in January of year 1 working on the evaluation.
b. $2,500 for new office furniture. The furniture was delivered on January 15.
c. $3,000 for property taxes payable on her factory.
d. $1,500 for interest on a short-term bank loan relating to the period from November 1, year 0 through March 31.