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In January of year 0, Justin paid $8,400 for an insurance policy that...

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Accounting

In January of year 0, Justin paid $8,400 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 0 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 0 through March 31 of year 1.

b. The policy begins on February 1 of year 1 and extends through January 31 of year 2.

c. Justin pays $9,600 for a 24-month policy that covers the business from April 1, year 0, through March 31, year 2.

d. Instead of paying an insurance premium, Justin pays $8,400 to rent his business property from April 1 of year 0 through March 31 of year 1.

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