In August 2023, Owen paid cash for an insurance policy that lasts for nine months and costs $18,000. Assuming that he wants to take deductions as soon as possible, how much can Owen deduct in 2023 assuming (a) that he uses the cash method and (b) that he uses the accrual method? (State your response for each method separately.)

Answer rating: 100% (QA)

a Cash Method Under the cash method of accounting expenses are deductible when they are actuall... View the full answer