Question

Peyton is a self employed certified financial planner and began his business in 2018. During 2018 he purchased a $ 500.00 computer and a $250.00 desk. Hes also paid 6000.00 in legal/incorporation fees and spent 12,000.00 for a new roof for the office building he owns. Which purchases can he expense in 2018 without limitations?

Answer 1

Answer:

With an income of US$ 6,000, Peyton can expense in 2018 without limitations the purchase of:

A. The computer

B. The desk

The new roof for the office has to be deferred partially or totally for the next year because the income of 2018 is lower than this particular expense.

Explanation:

1. Let's review the information provided to answer the question correctly:

Price of the computer purchased in 2018 = US$ 500

Price of the desk purchased in 2018 = US$ 250

Price of the new roof for the office purchased in 2018 = US$ 12,000

Legal and incorporation fees that Payment was paid in 2018 = US$ 6,000

2. Which purchases can Peyton expense in 2018 without limitations?

With an income of US$ 6,000, Peyton can expense in 2018 without limitations the purchase of:

A. The computer

B. The desk

The new roof for the office has to be deferred partially or totally for the next year because the income of 2018 is lower than this particular expense.