If a Partnership incurs interest expenses on a capital invested by the Partner in the Partnership, is the interest deductible to the Partnership $?$

Select the correct answer

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o No$,$ because it is treated as an allocation of partnership profits

o No$,$ because it was not wholly and exclusively incurred for the purpose of the business

o Yes, because the capital was used to produce taxable Income

o Yes, because the interest was calculated using arm$$s length terms