Based on 20 years of experience, a business deducted the future estimated cost of honouring discount coupons distributed to customers. Which of the following statements would be true in respect of the discount? Multiple Choice If reasonable, it would be deductible in the current year. It would not be tax deductible as it is reserve, not specifically allowed by the Income Tax Act. It would be considered capital and not all of it would be currently deductible, as it would also benefit future sales and therefore long-term.. It would be currently deductible, as its purpose is to earn income.

Based on 20 years of experience, a business deducted the future estimated cost of honouring discount coupons distributed to customers. Which of the following statements would be true in respect of the discount? Multiple Choice If reasonable, it would be deductible in the current year. It would not be tax deductible as it is reserve, not specifically allowed by the Income Tax Act. It would be considered capital and not all of it would be currently deductible, as it would also benefit future sales and therefore long-term.. It would be currently deductible, as its purpose is to earn income.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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