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QUESTION 16 Mary Lou, a cash-basis taxpayer, signs a 12-month lease for $36,000 which starts on July 1, 2021. a. Assume that she paid the

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QUESTION 16 Mary Lou, a cash-basis taxpayer, signs a 12-month lease for $36,000 which starts on July 1, 2021. a. Assume that she paid the entire $36,000 on the date she signed the lease as required to obtain this rate. Show the calculation for her 2021 deduction. b. Let's say that prepaying the lease was not required and she paid only the monthly amount the first of each month. Show the calculation of her 2021 deduction. c. Refer back to the original scenario in part a, and $36,000 was required to be paid up front when the lease commences on 7/1/21. But now the lease is for 24 months instead of 12 months. Show the calculation of Mary Lou's 2021 deduction

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