In january of year 0, justin paid $4,800 for an insurance policy that covers his business property for accidents and casualties. justin is a calendar-year taxpayer who uses the cash method of accounting. what amount of the insurance premium may justin deduct in year o in each of the following alternative scenarios?

a) the policy covers the business property from april 1 of year o through march 31 of year 1.
b) the policy begins on february 1 of year 1 and extends through january 31 of year 2.
c) assume justin paid s6,ooo for a 24-month policy that covers from april 1, year o through march 31, year 2.
d) assume that instead of paying an insurance premium, justin paid s4,800 to rent his business property from april 1 of year o through march 31 of year 1.

Baskin promotions, inc. sells t-shirts decorated for a variety of concert performers. the company has developed the following budget for the coming year based on a sales forecast of 80,000 t-shirts: sales $ 1,400,000 cost of goods sold 820,000 gross profit 580,000 operating expenses ($100,000 is fixed) 418,400 operating income 161,600 income taxes (30% of operating income) 48,480 net income $ 113,120 cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. if the concert season is slow due to poor weather, baskin estimates that sales could fall to as low as 60,000 t-shirts. assume baskin actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. a performance report would indicate that net income was: