Mike Started a Calendar Year Business on September 1^st of This

question 41

Multiple Choice

Mike started a calendar year business on September 1^st of this year by paying 12 months' rent on his shop at $1,000 per month.What is the maximum amount of rent that Mike can deduct this year under each type of accounting method?

• A) $12,000 under the cash method and $12,000 under the accrual method.
• B) $4,000 under the cash method and $12,000 under the accrual method.
• C) $12,000 under the cash method and $4,000 under the accrual method.
• D) $4,000 under the cash method and $4,000 under the accrual method.
• E) $4,000 under the cash method and zero under the accrual method.

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Definitions:

Readiness Potential

A measure of brain activity indicating the pre-motor buildup of neural processes preceding voluntary muscle movements.

Brain Activity

The functioning or operation of the brain, measured by various physiological or neuroimaging techniques.

Decision to Move

The cognitive process involved in choosing to perform a physical action or change position.

Global Workspace Hypothesis

A hypothesis about the neural basis of consciousness. It proposes that specialized neurons, called workspace neurons, give rise to consciousness by allowing us to link stimuli or ideas in dynamic, coherent representations.