In light of the economic performance requirement, how much is deductible by the following accrual basis corporate taxpayers this year a Camp Corporation sells products with a one year warranty Camp estimates that the warranty costs on products sold during this year will amount to $80,000 Camp perfo...

a Only warranty work actually performed this year is de ...

In light of the economic performance requirement, how much is deductible by the following accrual-basis corporate taxpayers

Question:

In light of the economic performance requirement, how much is deductible by the following accrual-basis corporate taxpayers this year?
a. Camp sells products with a one-year warranty. Camp estimates that the warranty costs on products sold during this year will amount to $80,000. Camp performs $38,000 of warranty work on products sold last year and $36,000 of warranty work on products sold this year.
b. Data agrees to pay $10,000 this year and $10,000 next year to a software developer. The developer completes all work on the software and delivers the product to Data this year.
c. Palm pays $5,000 to a supplier to guarantee delivery of raw materials. The $5,000 is refundable if Palm decides not to acquire the materials.
d. This year North pays a $1,000 security deposit on space it rents for a new office. In addition, North pays current year rent of $18,000. The security deposit is refundable if the property is returned in good condition. 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...