Brad Operates a Storage Business on the Accrual Method

question 73

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 correct.

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