Problem: Aubry, a cash basis and calendar year taxpayer, decides to reduce his taxable income for 2008 by buying $30,000 worth of supplies on December 24th, 2008. The supplies will be used up in 2009.
a. Can Aubry deduct the expenditure for 2008?
b. Would your answer in part (a) change if Aubry bought the supplies because the seller was going out of business and offered a significant discount on the price?