3 7. Kat Corporation, an accrual-method and calendar year taxpayer, paid $8,000 in real estate taxes on July 1, 2021, covering the period July 1, 2021, to June 30, 2022. Kat also incurred and paid $2,400 for premiums on a life insurance policy covering the period October 1, 2021, to September 30, 2022. The life insurance policy insures the life of its president and CEO. Kat Corporation is named as the beneficiary of the policy. The amount of real estate taxes and life insurance premiums that Kat Corporation can deduct as a business expense in 2021 is: a. $4,000. b. $4,600. C. $8,000 d. $10,400. e. none of the above