Question: Please Help: Incorrect Question 2 0/0.5 pts On Dec. 15, 2020, Julie's Tax Prep, a cash-method taxpayer, prepaid $5,000 worth of deductible interest on a

Please Help:

a cash-method taxpayer, prepaid $5,000 worth of deductible interest on a business

loan. The interest won't accrue until January 2021. Julie's Tax Prep will

be displaying for the first time at a trade show in July

Incorrect Question 2 0/0.5 pts On Dec. 15, 2020, Julie's Tax Prep, a cash-method taxpayer, prepaid $5,000 worth of deductible interest on a business loan. The interest won't accrue until January 2021. Julie's Tax Prep will be displaying for the first time at a trade show in July 2021. On Dec. 16, 2020, Julie's prepaid the $7,000 trade show booth rental expense. The payment isn't due until May 2021, and use of the booth will occur in July 2021. In addition, on Dec. 28, 2020, Ed's Equipment repaired some equipment in Julie's office and billed Julie's $2,000. Julie's received the invoice on Dec. 28, 2020 and paid the $2,000 invoice on Jan. 29, 2021. How much of the $14,000 in deductible business expenses may Julie's Tax Prep deduct in 2020? 12,000

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