In Order to Protect Against Rent Increases on the Building

question 30

Essay

In order to protect against rent increases on the building in which she operates a dance studio, Mella signs an 18- month lease for $36,000.The lease commences on October 1, 2019.How much of the $36,000 payment can she deduct in 2019 and 2020?
a.If Mella is an accrual basis taxpayer?
b.If Mella is a cash basis taxpayer?

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Definitions:

Extrapyramidal Side Effects

Unwanted movement disorders or symptoms that can occur as a result of certain psychiatric and neurological medications.

First-Generation Antipsychotic

A class of older antipsychotic medications primarily used to treat psychotic disorders, known for their dopaminergic blockade mechanism and side effects like extrapyramidal symptoms.

Dosage

The specific amount of medication prescribed to be taken at one time or over a particular period.

Synergistic Effect

In pharmacology, an increase of effects that occurs when more than one substance is acting on the body at the same time.