Christopher,a Cash Basis Taxpayer,borrows $1,000 from ABC Bank by Issuing

question 85

True/False

Christopher,a cash basis taxpayer,borrows $1,000 from ABC Bank by issuing a 3-month note on December 1,2014.Christopher receives $940 but must repay $1,000 on the due date.The amount of interest expense deductible in 2014 is $20.

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