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In December 2020, Ryan paid $31,230 for an insurance policy that covers his business property...

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Accounting

In December 2020, Ryan paid $31,230 for an insurance policy that covers his business property for accidents and casualties. Ryan is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Ryan deduct in 2020 in each of the following alternative scenarios? a. The policy covers the business property from March 1, 2021 February 28, 2022. b. The policy covers the business property from November 1, 2020 October 31, 2022. c. The policy covers the business property from December 1, 2020 November 30, 2021. d. Assume that instead of paying an insurance premium, Ryan paid $31,230 in rent for Dec 1, 2020 May 31, 2021.

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