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

Exercise 65

Matt hired Apex Services to repair a piece of Matt's business equipment.On November 1 of year 0, Matt paid $2,000 for the repairs that he expects to begin in early March of year 1.
a.What amount of the cost of the repairs can Matt deduct in year 0 if he uses the cash method of accounting for his business
b.What amount of the cost of the repairs can Matt deduct in year 0 if he uses the accrual method of accounting for his business
c.What amount of the cost of the repairs can Matt deduct in year 0 if he uses the accrual method and he expects the repairs to be done by early February
d.What amount of the cost of the repairs can Matt deduct in year 0 if he uses the cash method of accounting and he expects the repairs to be done by early February