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In Order to Protect Against Rent Increases on the Building

question 29

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In order to protect against rent increases on the building in which she operates a dance studio,Mella signs an 18-month lease for $36,000.The lease commences on October 1,2014.How much of the $36,000 payment can she deduct in 2014 and 2015?
a.If Mella is an accrual basis taxpayer?
b.If Mella is a cash basis taxpayer?


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