Joe Gilmore, a single man, files his income tax return on a cash basis. During the current year $800 of interest was credited to him on his savings account; he withdrew this interest on January 18 of the following year. No other intei'est and no dividends were received by Gilmore. LO2 In December of the current year Gilmore purchased some business equipment having an estimated service life of five years. He also paid a year’s rent in advance on certain business property on December 29 of the current year. Explain how these items would be treated on Gilmore’s current year’s income tax return.