KOM pays the following insurance premiums during 2021:

a. If KOM uses the accrual method of accounting, what is the insurance expense deduction for 2021?

b. If KOM uses the cash method of accounting, what is the insurance expense deduction for 2021?

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Auto accident and liability insurance: Paid 1/1/21 Coverage period 1/1/21 - 12/31/21 Fire, storm, and other casualty insurance: Paid 4/1/21 Coverage period 4/1/21 - 3/31/23 Business liability insurance: Paid 5/1/21 Coverage period 5/1/21-4/30/22 $3,500 $5,000 $3,000