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Business, 28.07.2021 01:00 miami158999

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 $18,200 rent on April 1, 2020 for the 12 months ending March 31, 2021. Required:
a. How much is Shanna’s deduction for rent expense in 2021?
b. Assume the same facts, except that the $8,400 is for 24 months’ rent ending March 31, 2020. How much is Shanna’s deduction for rent expense in 2021?

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