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.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter3: Organizing And Financing A New Venture

Section: Chapter Questions

Problem 7EP

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