Leona Borrows $100,000 from First National Bank and Uses the Proceeds

question 81

True/False

Leona borrows $100,000 from First National Bank and uses the proceeds to purchase City of Houston bonds.The interest Leona pays on this loan is deductible as investment interest subject to the investment interest limits.

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Definitions:

Gram

An alternative definition: A basic unit of weight in the metric system equivalent to approximately 0.035 ounces.

Milliliters

A metric system volume unit that equals one thousandth of a liter.

Liters

A unit of volume in the metric system, equivalent to 1,000 cubic centimeters or approximately 0.26 gallons.

Centimeter

A unit of length in the metric system, equivalent to one hundredth of a meter, used commonly to measure small distances.