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 $183,000 for an 18-month period. To obtain this favorable lease rate, she pays the $183,000 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   I thought since she uses the cash method it will be $183000 however that answer is coming back as incorrect. Please help!

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 $183,000 for an 18-month period. To obtain this favorable lease rate, she pays the $183,000 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

 

I thought since she uses the cash method it will be $183000 however that answer is coming back as incorrect. Please help! 

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