3. On July 1, 2021, Darryl borrowed $315,000 from Bank of America for use in his business. In October, Darryl paid interest for December 1, 2021 - February 28, 2022 of $4,695.

1. How much interest, if any, can Darryl deduct in 2021 if his business uses the cash method of accounting for tax purposes?
2. How much interest, if any, can Darryl deduct in 2021 if his business uses the accrual method of accounting for tax purposes?