On November $1$ of this year, Jaxon borrowed $$43,000$ from Bucksnort Savings and Loan

for use in his business. In December, Jaxon paid interest of $$3,870$ relating to the $12-$

month period from November of this year through October of next year.

Note: Do not round intermediate calculations. Assume a calendar year end.

a$.$ How much interest, if any, can Jaxon deduct this year if his business uses the cash method of

accounting for tax purposes?

Deductible amount

b$.$ How much interest, if any, can Jaxon deduct this year if his business uses the accrual method of

accounting for tax purposes?

Deductible amount