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Accounting Methods for Deductions Problem On November 22, Year 21, Tidy Company, a calendar-year,...

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Accounting

Accounting Methods for Deductions Problem
On November 22, Year 21, Tidy Company, a calendar-year, cash-basis taxpayer, paid a
$8,800 premium to acquire a casualty insurance policy on its business assets.
a. If the policy has a one-year term from December 1, Year 21 through November 30,
Year 22, what is the insurance deduction for Tidy Company in Year 21?
b. If the policy has a one-year term from February 1, Year 22 through January 31,
Year 23, what is the insurance deduction for Tidy Company in Year 21?
c. If the policy has a three-year term from January 1, Year 22 through December 31,
Year 24, what is the insurance deduction for Tidy Company in Year 21?
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