Jetex, an accrual basis, calendar year corporation, engages in the business of longdistance freight hauling. Every year,
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Even though none of the permits and licenses was valid for more than 12 months, a substantial number of them didn't expire until sometime in 2018. In fact, Jetex calculated that $612,000 of the total cost incurred in 2017 actually benefited the company in 2018. For financial statement purposes, Jetex capitalized this amount as an asset and expensed only the $507,200 remainder on its 2017 income statement. As an accrual basis taxpayer, is Jetex limited to a $507,200 deduction in 2017?
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Principles Of Taxation For Business And Investment Planning 2018
ISBN: 9781259713729
21st Edition
Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan
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