McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver

Exercise 59

On November 1 of year 0, Jaxon borrowed $50,000 from Buck snort Savings and Loan for use in his business.In December, Jaxon paid interest of $4,500 relating to the 12-month period from November of year 0 through October of year 1.
a.How much interest, if any, can Jaxon deduct in year 0 if his business uses the cash method of accounting for tax purposes
b.How much interest, if any, can Jaxon deduct in year 0 if his business uses the accrual method of accounting for tax purposes