Please answer the attached problems. Please answer in your own words (don't plagiarize). Be sure to show the calculations also. Thanks.

643 Prepaid Expenses. Pamello, Inc., an engineering consulting firm, uses the cash method of accounting and is a calendar year taxpayer. Compute the amount of Pamello's current year deductions for the following transactions: a. On November 1 of the current year, it entered into a lease to rent some office space for five years. The lease agreement states that the lease payments are $12,000 per year, payable in advance each November 1 for the following 12month period. Under the terms of the lease, Pamello is required to pay a $5,000 deposit, refundable upon the termination of the lease. b. On December 1 of the current year, Pamello also renewed its malpractice insurance, paying $18,000 for the threeyear contract. c. On December 31 of the current year, Pamello mailed out a check for $5,000 for the drafting services performed for it during the current year by an individual who lives in another city. d. On December 31, the firm received a shipment of $700 worth of stationery and other office supplies. Pamello has an open charge account with the office supply company, which bills the firm monthly for charges made during the year. e. On December 31, Pamello picked up some work that a local printing company had done for it, which amounted to $1,000. The firm charged the $1,000 with its corporate credit card. 644 Prepaid Interest. During the current year, Richard and Alisha, a married couple who use the cash method of accounting, purchased a principal residence for $320,000. They paid $40,000 down and financed the remaining $280,000 of the purchase price with a 30year mortgage. At the closing, they also paid $500 for an appraisal, $500 for a title search, and 1.5 points representing additional interest over the term of the loan. At the end of the year, Richard and Alisha received a statement from the mortgage company indicating that $12,000 of their total monthly payments made during the year represents interest and $1,000 is a reduction of the principal balance. a. What is the total amount Richard and Alisha may deduct in the current year arising from the purchase and ownership of their home? b. What is the treatment of the other items that are deductible