Question

Corporation J manufactures electrical appliances. Corporation K provides architectural services. During the year, both corporations paid $56,000 annual premiums to carry fire and casualty insurance on their tangible assets. Corporation J was required to capitalize the $56,000 cost for tax purposes while Corporation K was allowed a $56,000 deduction. Can you explain this difference in tax treatment between the two corporations?


$1.99
Sales0
Views13
Comments0
  • CreatedNovember 03, 2015
  • Files Included
Post your question
5000