6.3.18. On August 18 of the current year, Mr. Q's original home mortgage had a balance of $30,000. On that date, he took out a $20,000 second mortgage Mr. Q used $5,000 for paving his driveway and $15,000 to buy a new car. After the improvement, Mr. Q's residence has an adjusted basis of $45,000 and a fair market value of $60,000. All of the interest paid by Mr. Q on his first and second mortgages is fully deductible A. True. B. False. 6.3.19. On August 1, Year 1, Mr. G borrowed $10,000 in order to meet margin requirements on his investment in the commodities market. On August 5, Year 1, Mr. G bought five contracts of May, Year2 corn and sold five contracts of June, Year 2 corn. On December 24, Year 1, Mr. G sold the May, Year2 contracts realizing a loss of $20,000, and bought five contracts of July, Year 2 corn. Interest on the loan amounted to $800, which Mr. G paid in Year 1 Mr. G may deduct the $800 as interest expense on his Year 1 tax returrn A. True. B. False. 6.3.20. Commitment fees that you incur to have business funds made readily available to you over a period of time, but not for actual use of the funds, are not deductible as interest payments. However these fees are costs of getting your loan, and you carn deduct a part of the fees in each tax year during the period of the loan. True B. False