Question: Clyde operates a sole proprietorship using the cash method. this year Clyde made the following expenditures: $480 to US Bank for 12 months of interest

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

$480 to US Bank for 12 months of interest accruing on a business loan from September 1st of this year through August 31st of next 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

A. 760

B. 600

C. 480

D. 160

E. 360

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