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Sagot :
Answer:
Jeo (Self-employed Electrician)
The true statement is:
c. The taxes would not be deductible if Joe's business was on the cash method.
Explanation:
Since Joe did not pay the property taxes this year, it will not be deductible if he were on the cash method. But the property taxes of $4,500 will be deductible because Joe operates on the accrual method. The difference between the cash and accrual methods is that using the cash method, Joe's business expenses are recognized when they are paid. But with an accrual method, Joe's business expenses are recognized when incurred and not when paid is made.
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