On July 1 of the Current Year,Marcia Purchases a Small

question 48

Multiple Choice

On July 1 of the current year,Marcia purchases a small office building to use in her business and borrows $320,000.Marcia is required to pay two points on the loan.The loan is secured by the property and the charging of points is an established business practice in the area.The term of the loan is 20 years,beginning on July 1 of the current year.How much,if any,of the points may Marcia deduct in the current year?

• A)$0
• B)$160
• C)$3,200
• D)$6,400

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Definitions:

Benzophenone

An organic compound used as a photoinitiator and in the manufacture of perfumes, soaps, and other products, known for its benzene ring bonded to a ketone.

Structure

Refers to the manner in which atoms or molecules are arranged or bonded together in a material or molecule.

IUPAC Name

A unique, standardized identifier for chemical substances based on the rules established by the International Union of Pure and Applied Chemistry.

IUPAC Name

The systematic name assigned to a chemical substance based on the rules of the International Union of Pure and Applied Chemistry.