A Ltd has borrowed the following loans from a bank: -A loan of $1m to finance its business activities in Hong Kong, and - A loan of $1.8m to finance its offshore business The two loans are secured by an overseas fixed deposit of $2m. In the year of assessment 2020/21, A Ltd eamed interest of $28,000 from the overseas deposit and paid $30,000 interest in the $1m loans and $40,000 on the $1.8m loans. How much interest can A Ltd deduct for profits tax purposes in the year of assessment 2020/21? A. $42,000 B. $16,000 c. $20,000 D. $2,000