Jones, inc., a calendar-year taxpayer, is in the air conditioner repair business. the business uses the cash method. in december of the current year, jones charged $100 of supplies at refrigeration, inc., (he will pay the credit card bill in january) and also purchased $600 of supplies at xyz on open account (he will make a payment on the open account in january). what is the amount that is deductible by jones, inc., in the current year? a) $100b) $600c) $700d) the amounts must be capitalized and charged to expense as used.

Option (A) is correct.

Explanation:

Jones, Inc. is in the air conditioner repair business

In December,

Charged for supplies at Refrigeration = $100

Purchased supplies at XYZ on open account = $600

Therefore, the amount that is deductible by Jones, Inc., in the current year is $100 because open account will not be considered for the month of December.

That's why purchased supplies of $600 from XYZ will not be deducted by the Jones, Inc.

d. automatic stabilizers.

explanation:

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: