Xeno Corporation purchased supplies from Kimbo Company in 2018. The total invoice was for ($ 20,000), but

Question:

Xeno Corporation purchased supplies from Kimbo Company in 2018. The total invoice was for \(\$ 20,000\), but Xeno claimed that only one-half of the order was received and paid only \(\$ 10,000\) in 2018 . Both parties honestly disputed the bill and Xeno refused to pay the contested amount. They went to court and a judgment requiring Xeno to pay an additional \(\$ 5,000\) was issued in 2019 . How should Xeno report this expense?

a. \(\$ 10,000\) in 2018 and \(\$ 5,000\) in 2019

b. \(\$ 15,000\) in 2018

c. \(\$ 15,000\) in 2019

d. \(\$ 20,000\) in 2018 and \(\$ 5,000\) of income in 2019

e. None of the above

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

CCH Federal Taxation 2019 Comprehensive Topics

ISBN: 9780808049081

2019 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

Question Posted: