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Business, 20.02.2020 00:58 gabbypittman20

LSG Company is a calendar year, cash basis taxpayer. On November 1, 2018, LSG paid $9,450 cash to the janitorial service firm that cleans LSG’s administrative offices and retail stores. How much of this expenditure can LSG deduct in 2018 assuming that:

a. The expenditure is a prepayment for six months of cleaning services from November 2018 through April 2019?

b. The expenditure is a prepayment for 18 months of cleaning services from November 2018 through April 2020?

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