In January of year 0, Justin paid $6,200 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 0 in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.)b. The policy begins on February 1 of year 1 and extends through January 31 of year 2.**Deductible amount** [Text box for entry]

Since they follow cash basis of accounting entire Insurance expense paid will be available as deduction irrespective of the year of expenses that will entertail...Amount of deduction is::$6200 on such insurance expense ..

Business

Accounting

In January of year 0, Justin paid $6,200 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.) b. The policy begins on February 1 of year 1 and extends through January 31 of year 2. Deductible amount

In January of year 0, Justin paid $6,200 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.) b. The policy begins on February 1 of year 1 and extends through January 31 of year 2. Deductible amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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