Business, 24.03.2021 23:40 tresajacko4931
On November 1 of this year, Jaxon borrowed $32,000 from Bucksnort Savings and Loan for use in his business. In December, Jaxon paid interest of $2,880 relating to the 12-month period from November of this year through October of next year.
A. How much interest, if any, can Jaxon deduct this year if his business uses the cash method of accounting for tax purposes?
B. How much interest, if any, can Jaxon deduct this year if his business uses the accrual method of accounting for tax purposes?
Answers: 2
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On November 1 of this year, Jaxon borrowed $32,000 from Bucksnort Savings and Loan for use in his bu...
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