Company N owes $90,000 to Creditor K. At the end of 2017, Company N accrued interest expense of $7,740 on this debt. It didnt pay this liability until March 3, 2018. Company N is a calendar year taxpayer. For each of the following cases, determine the year in which Company N can deduct the $7,740 interest expense:

a. Company N is a cash basis taxpayer b. Company N is an accrual basis taxpayer (assuming that the expense passed the all events test).