(Solution) - KOM pays the following insurance premiums during 2011 Auto acci -(2025 Original AI-Free Solution)

Paper Details

KOM pays the following insurance premiums during 2011:
Auto accident and liability insurance:
Paid 1/1/11 Coverage period 1/1/11?12/31/11 ... $3,500
Fire, storm, and other casualty insurance:
Paid 4/1/11 Coverage period 4/1/11?3/31/13 .... $5,000
Business liability insurance:
Paid 5/1/11 Coverage period 5/1/11?4/30/12 .... $3,000

a. If KOM uses the accrual method of accounting, what is the insurance expense deduction for 2011?
b. If KOM uses the cash method of accounting, what is the insurance expense deduction for 2011?