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.