Manufacturer Inc. is a calendar-year, accrual basis taxpayer. On Dec. 31, 2023, the bathroom in Manufacturer Inc.'s warehouse flooded, and Manufacturer Inc. hired a plumbing company to repair the bathroom. Manufacturer Inc. paid $6,345 to the plumbing company on Dec. 31, 2023, but because all staff were out on vacation for the New Year's holiday, the services were not provided until January 2, 2024. What amount can Manufacturer Inc. deduct in 2024?

Answer rating: 100% (QA)

Under the accrual method of accounting Manufacturer Inc can deduct the 6345 expense in 2023 even tho... View the full answer