Mike Started a Calendar-Year Business on September 1 ^st of This

question 90

Multiple Choice

Mike started a calendar-year business on September 1 ^st of this year by paying 12 monthsof rent on his shop at $1,000 per month. What is the maximum amount of rent that Mike can deduct this year under each type of accounting method?

• A)$12,000 under the cash method and $12,000 under the accrual method
• B)$4,000 under the cash method and $12,000 under the accrual method
• C)$12,000 under the cash method and $4,000 under the accrual method
• D)$4,000 under the cash method and $4,000 under the accrual method
• E)$4,000 under the cash method and zero under the accrual method

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Definitions:

Sleep Paralysis

A temporary inability to move or speak while falling asleep or upon waking, often accompanied by vivid sensory experiences.

Night Terror Disorder

A sleep disorder causing feelings of terror or dread, and typically occurs during non-REM sleep stages.

Sleep-Related Bruxism

The grinding or clenching of teeth during sleep, often resulting in dental damage or discomfort.

Primary Insomnia

A sleep disorder characterized by persistent difficulty falling or staying asleep that is not attributable to medical, psychiatric, or environmental causes.