CPA Associates,a cash-basis partnership with a calendar tax year,signs a contract for a 20-month subscription to an online tax research service,effective as of April 1.The firm pays the full $10,000 subscription bill on the April 1,2017 subscription start date.For 2017 the firm can deduct

Question

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A)Because the benefit of the expenditure is completely realized by the end of the following tax year,the full amount can be deducted in the year of payment.

CPA Associates,a Cash-Basis Partnership with a Calendar Tax Year,signs a Contract