Firm Fiesta, a calendar year taxpayer, owes a $$380,000$ long$-$term debt to an unrelated creditor. In December, it paid $$22,800$ to the creditor as interest for the $12-$month period from the prior September $1$ through August $31$ of the following year.

Required:

a$.$ Compute the deduction for this payment assuming that Fiesta uses the cash method of accounting for tax purposes.

b$.$ Compute the deduction for this payment assuming that Fiesta uses the accrual method of accounting for tax purposes.

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Compute the deduction for this payment assuming that Fiesta uses the cash method of accounting for tax purposes.

DeducIon. FIGURE OUT FOR BOTH PARTS A AND B PLEASE!!!!