Clyde operates a sole proprietorship using the cash method. This year, Clyde made the following expenditures:

$$480$ to U$.$S$.$ Bank for $12$ months of interest accruing on a business loan from September $1$ of this year through August $31$ of next year even though only $$160$ of interest accrued this year.

$$600$ for $12$ months of property insurance beginning on July $1$ of this year.

What is the maximum amount Clyde can deduct this year?

Multiple Choice

$$600$

$$160$

$$760$

$$480$

$$1,080$