On November 1, 2014, Milton Consultants Inc., enters into a 2-year lease agreement for the use of a photocopier. The lease agreement requires Milton Consultants to pay a fixed fee of $4,800 on November 1 and one cent for each copy made on a monthly basis. Milton made the $4,800 payment on November 1, 2014. It paid $450 on December 10, 2014 for copies made in November and $560 on January 12, 2015 for copies made in December. Milton Consultants Inc., uses the cash basis of accounting. Explain, in terms of the income tax concepts, the amount of the deduction for the use of the copier that Milton can take in 2014.

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The Answer of On November 1, 2014, Milton Consultants Inc., enters into a 2-year lease agreement for the use of a photocopier. The lease agreement requires Milton Consultants to pay a fixed fee of $4,800 on November 1 and one cent for each copy made on a monthly basis. Milton made the $4,800 payment on November 1, 2014. It paid $450 on December 10, 2014 for copies made in November and $560 on January 12, 2015 for copies made in December. Milton Consultants Inc., uses the cash basis of accounting. Explain, in terms of the income tax concepts, the amount of the deduction for the use of the copier that Milton can take in 2014.