In January of year 0, Justin paid $6,200 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 O in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) c. Justin pays $7,400 for a 24-month policy that covers the business from April 1, year 0, through March 31, year 2. (Do not round intermediate calculations.) Deductible amount

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
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Chapter6: Deductions And Losses: In General
Section: Chapter Questions
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In January of year 0, Justin paid $6,200 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 O in each of the following alternative scenarios? (Leave
no answers blank. Enter zero if applicable.)
c. Justin pays $7,400 for a 24-month policy that covers the business from April 1, year 0, through March 31, year 2. (Do not round
intermediate calculations.)
Deductible amount
Transcribed Image Text:In January of year 0, Justin paid $6,200 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 O in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) c. Justin pays $7,400 for a 24-month policy that covers the business from April 1, year 0, through March 31, year 2. (Do not round intermediate calculations.) Deductible amount
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