15) Taxpayer started a calendar-year business on 1 August 2019. On that date, Taxpayer $9,600 in rent for the period 1 August 2019 through 31 July 2020. Determine the maximum amount that Taxpayer may deduct in 2019 under each method of accounting.

FOR THE TAX YEAR 2019

a) $4,000 under the cash method and zero under the accrual method

b) $4,000 under both the cash and accrual methods

c) $4,000 under the cash method and $9,600 under the accrual method

d) $9,600 under the cash method and $4,000 under the accrual method