Brad operates a storage business on the accrual method. On July 1 Brad paid $48,000 for rent on his storage warehouse and $18,000 for insurance on the contents of the warehouse. The rent and insurance covers the next 12 months. What is Brad's deduction for the rent and insurance?
A. $48,000 for the rent and $18,000 for the insurance.
B. $24,000 for the rent and $18,000 for the insurance.
C. $24,000 for the rent and $9,000 for the insurance.
D. $48,000 for the rent and $9,000 for the insurance.
E. None of these is true.
Answer: $24,000 for the rent and $18,000 for the insurance