Brad Operates a Storage Business on the Accrual Method

question 31

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 these is true.

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Definitions:

Dysmenorrhea

Painful menstruation that affects daily activities, which can be primary (not associated with other diseases) or secondary (associated with reproductive system disorders).

Painful Menstruation

Discomfort and pain during the menstrual cycle, medically known as dysmenorrhea.

Reflective Thinking

Type of logical thinking that becomes more prominent in adulthood, involving continuous, active evaluation of information and beliefs in the light of evidence and implications.

Deductive Reasoning

A logical process wherein a conclusion is based on the concordance of multiple premises that are generally assumed to be true.