How Much May Purple Corporation A Calendar Year Accrual Basis Corporation Deduct

How much may Purple Corporation, a calendar-year accrual-basis corporation, deduct if it paid $3,000 on April 1 for an insurance policy for the next three years, prepaid six months interest of $450 on November 1, and paid $2,000 rent for December and January on December 1.

a. $1,900

b. $2,450

c. $2,600

d. $5,450

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