Brad Operates a Storage Business on the Accrual Method

question 83

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:

Productivity

The measure of how efficiently production inputs, such as labor and materials, are converted into outputs, or goods and services.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period of time.

Shifts

Designated working periods for employees, defined by specific start and end times, to ensure continuous operation or coverage.

Productivity Increase

An improvement in the efficiency of producing goods or services, measured by the output per unit of input.