In Order to Protect Against Rent Increases on the Building

question 78

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 $36,000. The lease commences on October 1, 2018. How much of the $36,000 payment can she deduct in 2018 and 2019?
a. If Mella is an accrual basis taxpayer?
b. If Mella is a cash basis taxpayer?

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Definitions:

Marginal Artery

An artery that runs along the inner border of the colon, providing blood supply to the large intestine.

Circumflex Artery

A coronary artery that encircles the heart muscle, supplying blood and oxygen to the left atrium and the side and back of the left ventricle.

Bicuspid Valve

Another term for the mitral valve, located between the left atrium and left ventricle of the heart; it has two flaps (cusps).

Aortic Semilunar Valve

A valve in the heart between the left ventricle and the aorta that prevents blood from flowing back into the ventricle.