Mike started a calendar year business on September 1St of this year by paying 12 months' rent on his shop at $600 per month. What is the maximum amount of rent that Mike can deduct this year under each type of accounting method?
a) $2,400 under the cash method and $7,200 under the accrual method.
b) $2,400 under the cash method and zero under the accrual method.
c) $7,200 under the cash method and $7,200 under the accrual method.
d) $7,200 under the cash method and $2.400 under the accrual method
e) $2.400 under the cash method and $2.400 under the accrual method.