Each of the following independent cases involves interest expense and determination of whether the interest is deductible for income tax purposes. Case A Liang Chen borrows $700,000 using her Toronto condo as collateral security. She uses the amount to purchase high-tech common shares that she anticipates will double in value during the coming year. While the general policy of the company is not to make any dividend payments while the company is growing, the board of directors has agreed that dividends could be declared depending on the ever-evolving circumstances of the marketplace. However, dividends are not anticipated during the period that Liang intends to hold the shares. Unfortunately, instead of doubling, the