Ronald is a cash method taxpayer who made the following expenditures this year. Which expenditure is completely deductible in this period as a business expense?

Question

Quizplus · Accepted Answer

The rent is prepaid and must be amortized, the watch is a bribe, the gift is too expensive for deduction, and although a cash method taxpayer cannot deduct bad debts, amounts paid to collect those receivables are fully deductible as an ordinary and necessary business expense.

Ronald Is a Cash Method Taxpayer Who Made the Following