What amount of these expenses can earl computers take


Earl's Computers, Inc. is a cash basis taxpayer that uses the calendar year as its tax year. On October 2, Year 1, it borrowed $1,000 to pay a shipping charge and repaid $150 of that loan during the year. On December 10, Year 1, it paid a $100 utility bill by credit card. It did not pay that credit card charge until January 15, Year 2. On December 31, Year 1, it mailed a check for $200 to pay a printing charge, but the check was not received by the printer until January 2, Year 2. What amount of these expenses can Earl's Computers take into account for Year 1?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What amount of these expenses can earl computers take
Reference No:- TGS064097

Expected delivery within 24 Hours