Amy Borrowed $25,000 for Her Business from a Local Bank

question 86

Multiple Choice

Amy borrowed $25,000 for her business from a local bank two years ago.To increase her deductions for 2016,she pays December interest of $400 and prepays January and February interest totaling $800 on December 30,2016.The maturity date of the note is November 30,2017.How much of the interest that she paid in December is deductible in 2016?
I.If she is a cash-basis taxpayer,Amy's interest deduction is $1,200.
II.If she is an accrual-basis taxpayer,Amy's interest deduction is $400.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Leads

Potential customers who have shown interest in a company's products or services, often considered the first step in the sales process.

Prospects

Potential customers or clients who have been identified as having the interest and ability to purchase a product or service but have not yet made the transaction.

Qualified Prospects

Potential customers who have been evaluated and deemed likely to purchase, based on specific criteria such as need, ability, and authority to buy.

Prospecting Stage

The phase in sales where potential customers are identified and qualified before being approached by sales representatives.