Michael is a self-employed certified public accountant and began his business in 2021. During 2021, he purchased a $1,000 computer and a $400 desk chair. He also paid $7,000 in legal/incorporation fees and spent $14,000 for a new HVAC system for the office building he owns. Which purchase(s) can he expense in 2021 without limitation, if he has the appropriate accounting procedures in place, prior to

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter20: Corporations And Parterships
Section: Chapter Questions
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Michael is a self-employed certified public accountant and began his business in 2021. During 2021, he purchased a $1,000 computer and a $400 desk chair. He also paid $7,000 in legal/incorporation fees and spent $14,000 for a new HVAC system for the office building he owns. Which purchase(s) can he expense in 2021 without limitation, if he has the appropriate accounting procedures in place, prior to the beginning of the tax year?

 (a) Computer and desk only.

 (b) Computer, desk, legal/incorporation fees only.

 (c) Computer, desk, legal/incorporation fees, HVAC.

 (d) Legal/incorporation fees, HVAC only.

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