Match the proper deduction method with the correct expenditures.
-Fire and casualty insurance premium on business warehouse
A)Capitalized and amortized over a number of accounting periods
B)Expensed in the period incurred
C)Not deductible
D)Can be capitalized and amortized or deductible depending on the amount of the expenditure

Question

Quizplus · Accepted Answer

Fire and casualty insurance premiums on business warehouse are typically considered ordinary and necessary expenses and are deductible in the period they are incurred. Therefore, the best choice is to expense the premium in the period incurred (Option B).

Match the Proper Deduction Method with the Correct Expenditures