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

Exercise 5

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, year 1.
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, year 31.