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K Arlington, Inc., an engineering consulting firm, uses the cash method of accounting and is a calendar year taxpayer. Read the realipement Requirement CIP Compute the amount of Arlington's current year deductions for the following transactions: (Enter a "0" if no current year deduction is allowed.) a. On November 1 of the current year, it entered into a lease to rent some office space for five years. The lease agreement states that the lease payments are $18,000 per year, payable in advance each November 1 for the following 12-month period. Under the terms of the lease, Arlington is required to pay a $6,000 deposit, refundable upon the termination of the lease. The deduction amount for transaction a. is b. On December 1 of the current year, Arlington also renewed its malpractice insurance, paying $39,600 for the three-year contract. The deduction amount for transaction b. is c. On December 31 of the current year, Arlington mailed out a check for $3,500 for drafting services performed for it during the current year by an individual who lives in another city. The deduction amount for transaction c. is d. On December 31, the firm received a shipment of $1,300 worth of stationery and other office supplies. Arlington has an open charge account with the office supply company, which bills the firm monthly for charges made during the year. The deduction amount for transaction d. is e. On December 31, Arlington picked up some work that a local printing company had done for it, which amounted to $1,200. The firm charged the $1,200 with its corporate credit card. The deduction amount for transaction e. is

Compute the amount of Arlington's current year deductions for the following transactons: (Enter a "Vor if no conrent year deduction is alowed) a. On Novernber 1 of the current year, it entered into a lease to rent some ofice space for five years. The lease wyeenent states that the lease payments are $18,000 per year, payabio in advance The deduction amount for transaction a is b. On December 1 of the current year, Artingten also renewed ks mabroctioe insurance, paying $39,600 for the three year contract. The deduction amount for traniaction bi is c. On December 31 of the current yeat, Avlinglon maled out a check for $3,500 for drating services performed for it during the ourrech year by an individual who fives in anether oby The deduction amount for transaction c is monehly for charges made during the year. The deduction amount for vansaction d, is The deduction amount for transaction th. is Requirement Compute the amount of Arlington's current year deductions for the following transactions: a. On November 1 of the current year, it entered into a lease to rent some office space for five years. The lease agreement states that the lease payments are $18,000 per year, payable in advance each November 1 for the following 12 -month period. Under the terms of the lease, Arlington is required to pay a $6,000 deposit, refundable upon the termination of the lease. b. On December 1 of the current year, Arlington also renewed its malpractice insurance, paying $39,600 for the three-year contract. c. On December 31 of the current year, Arlington mailed out a check for $3,500 for drafting services performed for it during the current year by an individual who lives in another city. d. On December 31 , the firm received a shipment of $1,300 worth of stationery and other office supplies. Arlington has an open charge account with the office supply company, which bills the firm monthly for charges made during the year. e. On December 31, Arlington picked up some work that a local printing company had done for it, which amounted to $1,200. The firm charged the $1,200 with its corporate credit card. (Enter a " 0 " if no current year deduction is allowed.)

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