Each of the following independent cases involves interest payments and the issue is interest deductibility.

Case A: Abby Brown borrowed $ 250,000 and invested the entire loan proceeds in publicly traded securities. After 5 months, the securities value dropped to $ 150,000. At this point, Abby Brown sold the securities and used the proceeds to reduce the loan to $ 100,000. Since she no longer owns the securities, can Abby Brown deduct the interest on the remaining loan amount of $ 100,000? Explain your conclusion.

Case B: Bob Corner owned securities that had a current fair market value of $ 500,000. Using his margin balance available from his stockbroker, he borrowed $ 55,000 to finance a necklace purchase to give to his mother. During the time period when the margin loan was outstanding, he paid $2,000 interest on it. Can he deduct this interest against the $ 11,000 income earned during this period on his securities? Explain your conclusion.

Case C: Carrie Down borrowed $ 75,000 and used the funds to acquire an income producing property. She then sold the property for $ 190,000. She used the proceeds to acquire two properties: property A cost $ 50,000 and property B cost $ 140,000. How will the $ 75,000 in borrowing be linked to the two properties?

Case D:Donald East borrowed $ 300,000 and used the funds to purchase an income producing property. Later on, he sold the property for $ 140,000. He used the $ 140,000 to acquire two properties: property A cost $ 40,000 and property B cost $ 100,000. How will the $ 300,000 in borrowing be linked to the two properties?