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Trava [24]
3 years ago
11

Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2019, she leases

an office building to use in her business for $120,000 for an 18-month period. To obtain this favorable lease rate, she pays the $120,000 at the inception of the lease. How much rent expense may Maud deduct on her 2019 tax return? Round any calculations to two decimal places and round the final answer to the nearest dollar.
Business
1 answer:
gtnhenbr [62]3 years ago
5 0

Answer:

She can deduct the full $120,000. the answer is $120,000.

Explanation:

Therefore, M is following cash basis of accounting , She can deduct the full $120,000 amount. Under cash system, expenses are recorded when cash is paid irrespective of whether it is accrued or not.

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Answer:

24%

Explanation:

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2 years ago
during 2017, trey corporation accrued warranty expense based on 3.5% of net sales revenue. during 2018, trey corporation revised
aleksandr82 [10.1K]

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8 0
1 year ago
MC Qu. 114 Lowden Company has an overhead application... Lowden Company has an overhead application rate of 155% and allocates o
bogdanovich [222]

Answer:

the  overhead amount recorded is $139,500

Explanation:

The computation of the overhead amount recorded is shown below:

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= 155% × $90,000

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2 years ago
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Read 2 more answers
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