Charles is a cash basis taxpayer who pays his bills by phone through an account maintained at the First National Bank. When Charles authorizes this payment to one of his creditors the bank, as his agent, if the authorization is received before noon, will pay the bill that afternoon. If the authorizations received after 12 PM the bank will pay the creditor the next working day. The bank pays Charles's bill by charging Charles's account and either mailing checks to the creditor or transferring funds to the creditor's account if the creator maintains an account with the bank, or actually delivering the checks to the creditor. Assume the bank does not transfer the funds to the creditors account until January 2 when are the payments deductible by Charles?

Answer rating: 100% (QA)

Solution Sure Lets start by simplifying the expression step by step Well use the fact that the squar... View the full answer