Mr. J, a cash-method taxpayer, operates a business and files his return on a calendar-year basis. In Year 1, Mr. J took out a 3-year fire insurance policy on his building effective November 1. On January 1, Year 2, Mr. J paid a premium of $1,800 for the 3 years. What amount may Mr. J deduct as an insurance expense in Year 2?

		$1,800
		$100
		$700