LSG Company is a calendar year, cash basis taxpayer. On November 1, 2018, LSG paid $9,450 cash

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LSG Company is a calendar year, cash basis taxpayer. On November 1, 2018, LSG paid $9,450 cash to the janitorial service firm that cleans LSG's administrative offices and retail stores. How much of this expenditure can LSG deduct in 2018 assuming that:

a. The expenditure is a prepayment for six months of cleaning services from November 2018 through April 2019?

b. The expenditure is a prepayment for 18 months of cleaning services from November 2018 through April 2020?

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Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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