On December 1, Robert, a cash method taxpayer, borrows $10,000 from the bank for use in his business. Under the terms of the loan, the bank discounts the loan by $300, paying Robert the $9,700 cash proceeds. If Robert repays the loan next year, he may deduct

a. 300 next year

b. 300 this year

c. 25 this year and 275 next year

d. nothing because the note is nonintest-bearing