Brad Operates a Storage Business on the Accrual Method

question 82

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 covers 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:

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