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

Exercise 29

Matt hired Apex Services to repair a piece of Matt's business equipment.On November 1 of year 0, Matt paid $2,000 for the repairs that he expects to begin in early March of year 1.a.What amount of the cost of the repairs can Matt deduct in year 0 if he uses the cash method of accounting for his business?
b.What amount of the cost of the repairs can Matt deduct in year 0 if he uses the accrual method of accounting for his business?
c.What amount of the cost of the repairs can Matt deduct in year 0 if he uses the accrual method and he expects the repairs to be done by early February?
d.What amount of the cost of the repairs can Matt deduct in year 0 if he uses the cash method of accounting and he expects the repairs to be done by early February?