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Pani-rosa [81]
3 years ago
10

In January of year 0, Justin paid $4,800 for an insurance policy that covers his business property for accidents and casualties.

Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year 0 in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.)
a. The policy covers the business property from April 1 of year 0 through March 31 of year 1.
b. The policy begins on February 1 of year 1 and extends through january 31 of year 2.
c. Assume Justin paid $6,000 for a 24-month policy that covers from April1,year0 through March31,year2.
d. Assume that instead of paying an insurance premium,Justin paid $4,800 to rent his business property from April1 of year 0 through March 31 of year 1.
Business
1 answer:
Alla [95]3 years ago
6 0

Answer: 1million

Explanation Joffrey

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