Matt hired Apex Services to repair his business equipment. On November 1 of this year, Matt paid $2,000 for the repairs that he expects to begin in early March of next year.

What amount of the cost of the repairs can Matt

a) deduct this year if he uses the cash method of accounting for his business?

b) What amount of the cost of the repairs can Matt deduct this year if he uses the accrual method of accounting for his business?

What amount of the cost of the repairs can Matt deduct this year if he uses the accrual method, and he expects the repairs to be done by early February?

c)

What amount of the cost of the repairs can Matt deduct this year if he uses the cash method of accounting, and he expects the repairs to be done by early February?