Anne Is a Self-Employed Electrician Who Reports Her Business Income

question 24

Essay

Anne is a self-employed electrician who reports her business income using the accrual method over a calendar year. On September 1 ^st of this year, Anne paid $2,280 of interest on a loan. The interest accrues evenly over 19 months ($120 per month)from June 1 ^st of this year through December 31 ^st of next year. In addition, on September 1 ^st Anne also paid $2,700 for 18 months of professional liability insurance ($150 per month). What amount of interest and insurance can Anne deduct this year?

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Definitions:

Assertiveness

The quality of being confident and self-assured without being aggressive, allowing one to express themselves clearly and respectfully.

Five-factor Model

A theory in psychology that identifies five core personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing how they think, feel, and behave.

Erikson's Theory

A psychoanalytic theory by Erik Erikson that outlines eight stages of psychosocial development throughout a person's life.