Corporation J manufactures electrical appliances. Corporation K provides architectural services. During the year, both corporations paid $56,000

Question:

J manufactures electrical appliances. K provides architectural services. During the year, both corporations paid $56,000 annual premiums to carry fire and casualty insurance on their tangible assets. J was required to capitalize the $56,000 cost for tax purposes while K was allowed a $56,000 deduction. Can you explain this difference in tax treatment between the two corporations?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...