10. Calendar year taxpayer Dan Davis operates a small landscaping business, using the cash method for federal income tax purposes. On December 11, 2020, Dan paid $1,500 in advance to the Ajax Insurance Company for fire and casualty insurance coverage from January 1, 2021 - December 31, 2023. Regarding the deduction for the $1,500 premium cost, on his 2020 Form 1040, Schedule C, Dan should ... A Deduct insurance expense of $1,500 B Deduct no insurance expense Deduct insurance expense of $500 Deduct insurance expense of $750 None of the above D E Do not assume that a taxpayer makes an IRC 179 election or uses bonus depreciation unless a problem so states. For each question you answer, insert in the appropriate space on the separate answer sheet the letter which indicates the correct response. Please note than all final answers have been rounded to the nearest $10