In January of year 0, Justin paid $7,200 for an insurance policy that covers his business...

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In January of year 0, Justin paid $7,200 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) a. The policy covers the business property from April 1 of year O through March 31 of year 1. Deductible amount b. The policy begins on February 1 of year 1 and extends through January 31 of year 2. Deductible amount c. Justin pays $8,400 for a 24-month policy that covers the business from April 1, year O, through March 31, year 2. (Do not round intermediate calculations.) Deductible amount d. Instead of paying an insurance premium, Justin pays $7,200 to rent his business property from April 1 of year O through March 31 of year 1. Deductible amount In January of year 0, Justin paid $7,200 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) a. The policy covers the business property from April 1 of year O through March 31 of year 1. Deductible amount b. The policy begins on February 1 of year 1 and extends through January 31 of year 2. Deductible amount c. Justin pays $8,400 for a 24-month policy that covers the business from April 1, year O, through March 31, year 2. (Do not round intermediate calculations.) Deductible amount d. Instead of paying an insurance premium, Justin pays $7,200 to rent his business property from April 1 of year O through March 31 of year 1. Deductible amount

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Answer Part a Deductible amount 7200 Justin may deduct the entire a... View the full answer