How much deduct for rent expense on tax return, Accounting Basics

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How much deduct for rent expense on tax return

Vernon is a cash basis taxpayer with a calendar tax year. On November 1, 2012, Vernon entered into a lease to rent a building for use in his business at $4,000 a month. On that day Vernon paid 6 months rent on the building, a total of $24,000 ($4,000 ´ 6 months). How much may Vernon deduct for rent expense on his 2012 tax return?

a. $4,000

b. None of the above

c. $24,000

d. $8,000

e. $16,000

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Accounting Basics: How much deduct for rent expense on tax return

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Accounting Basics: How much deduct for rent expense on tax return

Reference No:- TGS046081

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Recent Questions Asked Accounting Basics

Q : Return for the purchased goodwill

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Q : How much deduct for rent expense on tax return

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Accounting Basics: How much deduct for rent expense on tax return

Reference No:- TGS046081

Recent Questions Asked Accounting Basics

Q : Return for the purchased goodwill

Q : Election to expense or take bonus depreciation problem

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Q : How much deduct for rent expense on tax return

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