In Order to Protect Against Rent Increases on the Building

question 29

Essay

In order to protect against rent increases on the building in which she operates a dance studio,Mella signs an 18-month lease for $18,000.The lease commences on November 1,2011.How much of the $18,000 payment can she deduct in 2011 and 2012?
a.If Mella is an accrual basis taxpayer?
b.If Mella is a cash basis taxpayer?

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Definitions:

Liver Function

The range of processes performed by the liver including detoxification, protein synthesis, and production of biochemicals necessary for digestion.

Cirrhosis

An irreversible condition, often caused by excessive drinking, in which the liver becomes scarred and begins to change in anatomy and functioning.

Confabulation

A made-up description of one’s experience to fill in a gap in one’s memory.

Binge Drink

The consumption of an excessive amount of alcohol in a short period of time, typically leading to acute intoxication.