Jim owns an apartment building with $10$identical units. He lives in one unit and rents the other nine to unrelated individuals. On April $1$of the current year, Jim paid property insurance on the apartment building for a $5-$year period beginning April $1$of the current year. The total insurance premium was $$2,000.$Assume Jim is a cash$-$basis, calendar$-$year taxpayer. What amount is Jim's rental expense in the current year for the insurance policy? Total insurance premium $/$ Number of years covered by the premium

Explanation:

First, you need to calculate the annual insurance cost by dividing the total insurance premium by the number of years the premium covers. In this case, the total insurance premium is $$2,000$ and it covers a $5-$year period. Annual insurance cost x Rental unit proportion

Explanation:

Next, you need to determine the portion of the insurance cost that is attributable to the rental units. Since Jim lives in one unit and rents out the other nine, you multiply the annual cost by the proportion of units rented, which is $9$ out of $10.$ Annual rental insurance cost $/$ Number of months in a year

Explanation:

Finally, you calculate the rental expense for the current year by dividing the annual rental insurance cost by the number of months in a year. Since Jim paid the premium on April $1$ and the insurance covers a $5-$year period starting from that date, you need to account for the insurance expense of the current year only. show step by step how to get the answer $270.$