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In January of year 0, Justin paid $7,000 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year
In January of year 0, Justin paid $7,000 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. Assume the insurance policy is for a 24-month period from April 1, year 0 through March 31, year 2. What amount of the insurance premium may Justin deduct in year 0?
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