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ISO ISOIEC20000LI

Beingcert ISO/IEC 20000 Lead Implementer Exam

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NEW QUESTION: 1
On December 1, 1992, Michaels, a self-employed cash basis taxpayer, borrowed $100,000 to use in her
business. The loan was to be repaid on November 30, 1993. Michaels paid the entire interest of $12,000
on December 1, 1992. What amount of interest was deductible on Michaels' 1993 income tax return?
A. $11,000
B. $12,000
C. $0
D. $1,000
Answer: A
Explanation:
Explanation
Choice "b" is correct. Prepaid interest must be prorated over the time for which payment is made. This is
true for both cash and accrual basis taxpayers. The loan is for 1 month in 1992 and 11 months in 1993.
Therefore, 1/12 of the interest is deductible in 1992 and 11/12, or $11,000 is deductible in 1993.
Choices "a", "c", and "d" are incorrect. Prepaid interest must be prorated over the time for which payment
is made. This is true for both cash and accrual basis taxpayers.

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Which event type indicates a Fatal problem has occurred in the system, and the process or operation will be terminated?
A. Information
B. Error
C. Warning
D. Audit
Answer: C

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    ISO ISOIEC20000LI (Beingcert ISO/IEC 20000 Lead Implementer Exam)

    Questions and Answers : 347
    Q&A Update On : January 3, 2019
    File Format : PDF
    Windows Compatibility : Windows 10/8/7/Vista/2000/XP/98
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    Linux : All Linux Versions
    Download ISOIEC20000LI Sample Questions

  • VCE Exam Simulator Software

    ISO ISOIEC20000LI (Beingcert ISO/IEC 20000 Lead Implementer Exam)

    VCE Exam Simulator Q&A : 347
    Q&A Update On : January 3, 2019
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