Reference no: EM131863942

1. A taxpayer would be allowed a current deduction for the full amount of a payment under the one year rule if the payment is:

a. made for computer network services to be completed within two months of the date of payment.

b. made for interest to be accrued on a business loan payable two years in advance.

c. made for accounting services to be provided in the next 13 months.

d. All of the above.

2. The standard adopted by the Supreme Court in Bliss Dairy/Hillsboro National Bank for the tax benefit rule is as follows:

a. The taxpayer must always include in income an amount formerly deducted if he or she receives a recovery of that amount.

b. Whether the taxpayer must include an amount in income is a question of fact to be determined on a case-by-case basis.

c. The taxpayer must include an amount in income where an event occurs that is inconsistent with the original deduction.

d. Both B and C.