Brad Operates a Storage Business on the Accrual Method

question 88

Multiple Choice

Brad operates a storage business on the accrual method.On July 1 Brad paid $48,000 for rent on his storage warehouse and $18,000 for insurance on the contents of the warehouse.The rent and insurance cover the next 12 months.What is Brad's deduction for the rent and insurance?

• A)$48,000 for the rent and $18,000 for the insurance.
• B)$24,000 for the rent and $18,000 for the insurance.
• C)$24,000 for the rent and $9,000 for the insurance.
• D)$48,000 for the rent and $9,000 for the insurance.
• E)None of the choices are true.

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Definitions:

Empathy

The capacity to comprehend and empathize with someone else's emotions by seeing things from their perspective.

Deindividuation

A psychological state where individuals lose self-awareness and feel less accountable in group settings, often leading to atypical behavior.

Personal Control

The belief in one's ability to influence events in one's life and the degree of control one has over their personal environment.

Conformity

Adjusting one's behavior or thinking to match those of other people or a group standard.