4. George transfers cash of $150,000 100% of the stock in Finch worth S80,000 and debt in the amount o..nnum. equal annual installments of$7,000 plus interest at the rate of 9% per of operation, Finch has net taxable income of $40,000. If Finch pays George $6,300 and $7,000 principal payment on the note: to Finch Corporation, a newly formed corporation, for annum. 1n the first year interest of a) George has dividend income of S13,300. b) Fi c) George has dividend income of $7,000. d) nch Corporation does not have a tax deduction with respect to the payment Finch Corporation has an interest expense deduction of $6,300. S. Tan Com pany acquires a new machine (ten-year property) on January 15, 2016, at a cost of $200,000. Tan also acquires another new machine (seven-year property) on November 5, 2016, at a cost of $40,000. No election is made to use the straight-line method. The company does not make the Section 179 election and elects to not take additional first-year depreciation if available. Determine the total deductions in calculating taxable income related to the machines for 2016. a) $24,000 b) $25,716 c) $102,000 d) $132,858