Mike Started a Calendar-Year Business on September 1^st of This

Mike started a calendar-year business on September 1^st of this year by paying 12 months of rent on his shop at $600 per month. What is the maximum amount of rent that Mike can deduct this year under each type of accounting method?

A) $7,200 under the cash method and $7,200 under the accrual method
B) $2,400 under the cash method and $7,200 under the accrual method
C) $7,200 under the cash method and $2,400 under the accrual method
D) $2,400 under the cash method and $2,400 under the accrual method
E) $2,400 under the cash method and zero under the accrual method