Match the proper deduction method with the correct expenditures.
-Investment expenditures related to earning interest from municipal bonds
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

Interest earned from municipal bonds is typically tax-exempt, so expenses related to earning that interest are not deductible.

Match the Proper Deduction Method with the Correct Expenditures