What extent can it deduct the payment

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What is the answer of this following question?

Question 1: Firm B uses the calendar taxable year and the cash method of accounting. On December 31, 20x6, Firm B made certain cash payments. To what extent can it deduct the payment in 20x6? (Please note: payments for assets to be consumed in the following year are fully deductible in the year of payment if the expenditure results in a benefit with a duration of 12 months or less and is consumed by the end of the following year.)

Point a) $3,000 compensation to a consultant who spent three weeks in January 20x7 analyzing B's internal control system.

Reference no: EM132465912

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