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Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of Shanna pays $22,600 rent on April 1, 2023, for the 12 months ending March 31, 2024. Do not round any division. a. How much is Shanna's deduction for rent expense in 2023? b. Assume the same facts, except that the $22,600 is for 24 months' rent ending March 31, 2025. How much is Shanna's deduction for rent expense in 2023?

Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of Shanna pays $22,600 rent on April 1, 2023, for the 12 months ending March 31, 2024. Do not round any division. a. How much is Shanna's deduction for rent expense in 2023? b. Assume the same facts, except that the $22,600 is for 24 months' rent ending March 31, 2025. How much is Shanna's deduction for rent expense in 2023?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays $22,600 rent on April 1, 2023, for the 12 months ending March 31, 2024. Do not round any division. a. How much is Shanna's deduction for rent expense in 2023? b. Assume the same facts, except that the $22,600 is for 24 months' rent ending March 31, 2025. How much is Shanna's deduction for rent expense in 2023?
Transcribed Image Text:Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays $22,600 rent on April 1, 2023, for the 12 months ending March 31, 2024. Do not round any division. a. How much is Shanna's deduction for rent expense in 2023? b. Assume the same facts, except that the $22,600 is for 24 months' rent ending March 31, 2025. How much is Shanna's deduction for rent expense in 2023?
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