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James Williams, a cash basis taxpayer, burrows $10,000 from the Ajax Bank for an investment loan on August 1, 2020, the full $10,000 to be

James Williams, a cash basis taxpayer, burrows $10,000 from the Ajax Bank for an investment loan on August 1, 2020, the full $10,000 to be repaid on August 1, 2021, one year later. Interest for one full year at 6% is deducted in advance from the loan proceeds. What is James interest expense deduction amount for 2020?

A. $250

B. $300

C. $ 400

D. $600

E. None of the above

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