Ronald is a cash method taxpayer who made the following expenditures this year. Which expenditure is completely deductible in this period as a business expense?
A. $4,000 for rent on his office that covers the next 24 months.
B. $3,000 for a new watch for the mayor to keep "good relations" with city hall.
C. $2,500 for professional hockey tickets distributed to a customer to generate "goodwill" for his business.
D. $55 to collect an account receivable from a customer who has failed to pay for services rendered.
E. None of these is completely deductible
Ans: D. $55 to collect an account receivable from a customer who has failed to pay for services rendered.
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