Mike started a calendar year business on September 1st of this year by paying 12 months of rent on his shop at $550 per month. What is the maximum amount of rent that Mike can deduct this year under each type of accounting method?

Multiple Choice

• $2,200 under the cash method and zero under the accrual method.
• $6,600 under the cash method and $2,200 under the accrual method.
• $2,200 under the cash method and $2,200 under the accrual method.
• $6,600 under the cash method and $6,600 under the accrual method.
• $2,200 under the cash method and $6,600 under the accrual method.