QUESTION 3 Rick runs a business with a calendar year-end. On May 1 of this year, Rick paid 12 months of rent on his shop at $1,000 per month (total payment $12,000). The rent covers a period from May 1 of this year through April 30 of next year. What is the maximum amount of rent that Rick can deduct this year under each type of accounting method? a. $12,000 under the cash method and $8,000 under the accrual method Ob. $12,000 under the cash method and $12,000 under the accrual method c. $8,000 under the cash method and $12.000 under the accrual method d. $8,000 under the cash method and zero under the accrual method e. $8,000 under the cash method and $8,000 under the accrual method