[35] Alma Knack is a calendar-year, cas-basis farmer who grows corn and raises h

Question

[35] Alma Knack is a calendar-year, cas-basis farmer who grows corn and raises hogs on a large farm in lowa. On December 26 of the current year, Alma purchased a 6-month supply of feed for the hogs costing $4,000. At the same time, she also purchased a new hybrid variety of seed costing $1,000 for the spring planting period. Her other farm expenses for the year were $9,000. Of the feed and seed purchased on December 26, Alma may deduct in the current year

A. Only $1,000.

B. Only $4,000

C. Only $4,500.

D. Only $10,000

Explanation / Answer

Answer :- C only $4500

Out if the feed and seed purchased Alma may deduct in the current year $4500.

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