F, a Calendar Year, Cash Basis Taxpayer, Started a Business

question 22

Multiple Choice

F, a calendar year, cash basis taxpayer, started a business on June 1.Her lease required monthly payments of $ 1,000 beginning on June 1.Insurance for the premises, also begun on June 1, was to be paid every six months and cost $600 for each six-month period (she paid her premiums due on June 1 and December 1) .F's deductions for these expenses total

• A)$7,000
• B)$7,100
• C)$7,600
• D)$8,200

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Definitions:

Rubella

A contagious viral disease, also known as German measles, that can cause severe birth defects if contracted by a pregnant woman.

Diethylstilbestrol

A synthetic estrogen that was prescribed between the 1940s and 1970s to prevent pregnancy complications, later found to cause health issues in exposed children.

Teratogens

Agents or factors that can cause developmental abnormalities or birth defects in an embryo or fetus.

Blastocyst

An early stage embryo consisting of approximately 150 cells formed about five days after fertilization, characterized by a fluid-filled cavity and the differentiation into an inner cell mass and outer layer.