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Question - Mike started a calendar year business on September 1st of this year by paying 12 months' rent on his shop at $1,000 per month. What is the maximum amount of rent that Mike can deduct this year under each type of accounting method?
A. 12,000 under the cash method and 12,000 under the accrual method.
B. 4,000 under the cash method and 12,000 under the accrual method.
C. 12,000 under the cash method and 4,000 under the accrual method.
D. 4,000 under the cash method and 4,000 under the accrual method.
E. 4,000 under the cash method and zero under accrual method.
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