Empresas Olivera maintains its accounting records under the accrual basis and its annual accounting period...
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Accounting
Empresas Olivera maintains its accounting records under the accrual basis and its annual accounting period ends on December 31. During 2020, you incurred expenses in the amount of $ 100,000, of which $ 40,000 had not been paid as of December 31, 2020. Of the $ 40,000 not paid, $ 20,000 was paid in February 2021, and the remaining $ 20,000 was paid in April 2021.
Determine how much of the expenses incurred in 2020 the company can claim as ordinary and necessary expenses in 2020. Explain.
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