Vernon Is a Cash Basis Taxpayer with a Calendar Tax

Multiple Choice

Vernon is a cash basis taxpayer with a calendar tax year.On October 1,2017,Vernon entered into a lease to rent a building for use in his business at $3,000 a month.On that day Vernon paid 18 months rent on the building,a total of $54,000 ($3,000 × 18 months) .How much may Vernon deduct for rent expense on his 2017 tax return?

A) $0
B) $12,000
C) $36,000
D) $54,000
E) None of the above