Taylor,a Cash Basis Architect,rents the Building in Which His Office

question 90

Essay

Taylor,a cash basis architect,rents the building in which his office is located for $5,000 per month.He commenced his practice on February 1,2016.In order to guarantee no rent increases during an 18-month period,he signed an 18-month lease and prepaid the $90,000 on February 1,2016.How much can Taylor deduct as rent expense for 2016?

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Definitions:

Third Quartile

The value below which 75% of the data in a data set falls, or the upper quartile in a distribution of data.

Hours

A unit of time equal to 60 minutes or 3,600 seconds, used to measure the duration of events or the length of time allocated to activities.

Playing Video Games

The act of engaging in electronic games that involve interaction with a user interface to generate visual feedback on a device.

Upper Quartile

The value above which 25% of the data lies, also known as the third quartile.