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

question 90

Multiple Choice

Mike started a calendar-year business on September 1 ^st of this year by paying 12 monthsof 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:

Functionalist Theory

A viewpoint in sociology that sees society as a complicated system in which its components cooperate to foster unity and steadiness.

Age Differentiation

The categorization or division of individuals into groups based on their age, affecting their roles, responsibilities, and social perceptions within society.

Common Good

The benefit or interests of all members of a community or society, considered as a guiding principle in public and social policy.

Inequality

The unequal access to resources, opportunities, and rights across different segments of society.