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Mr. Ali has $10,000 in his savings account. He requires $10,000 for a vacation and $10,000 to invest in gold coins. He plans to borrow
Mr. Ali has $10,000 in his savings account. He requires $10,000 for a vacation and $10,000 to invest in gold coins. He plans to borrow the extra $10,000 from his bank and hopes the interest expense will be tax deductible. Mr. Basil should: (3 marks)
A. | Use the bank loan to fund his vacation | |
B. | Use the bank loan to fund his gold coin investment | |
C. | Either action will allow an interest expense deduction | |
D. | Neither action will allow an interest expense deduction |
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