Jim owns an apartment building with 10 identical units. He lives in one unit and...
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Accounting
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 Jims rental expense in the current year for the insurance policy?
A) $270
B) $300
C) $1,800
D) $2,000
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