A Calendar Year,cash Basis Corporation Began Business on April 1,2017,and

A calendar year,cash basis corporation began business on April 1,2017,and paid $2,400 for a 24-month liability insurance policy.An accrual basis,calendar year taxpayer also began business on April 1,2017,and purchased a 24-month liability insurance policy.The accrual basis taxpayer must amortize the premiums over 24 months but the cash basis taxpayer may deduct the total premiums in 2017.