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May, a cash basis taxpayer, makes the following payments on June 30 of this year: $10,800 for the next 6 months of gas and electivity
May, a cash basis taxpayer, makes the following payments on June 30 of this year: $10,800 for the next 6 months of gas and electivity bills, $5,800 for insurance over the next 24 months, $14,000 for the next 9 months of interest on a business loan. What is the total amount that May is deductible this year? Justify your answer. (4 marks)
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