Please answer the following questions

unt. therefore, meets the as that was incurred in of B's principal residence. This he requirements of section 461(g)(2). 20 percent ($720) of the points paid by B may be deduc amount, ccordingly, 20 percer the taxable year paid. PROBLEMS 1. Lender lende required to pay $ five year period. - O interest each yeartible by Debtor wcember 3 year. Both parti er lends out money at a legal interest rate to Debtor. Debtor is nav $5,000 interest each year on the loan which extends over a period. The interest is deductible 15 deductible by Debtor under $ 163. The bent calls for payment of each year's interest on December 31 of the oth parties are calendar year, cash method taxpayers. Discuss the tax es to both parties under the following alternatives: Debtor mails a check for $5,000 interest to Lender on December 31, of year one. It is delivered to Lender on January 2 of year two. c) Debtor mails the check in (a), above, on December 30 of year one. It is delivered to Lender on December 31 of year one but after the banks are closed. (c) Debtor gives Lender a promissory note on December 31 of year one agreeing to pay year one's interest plus $50 on January 30 of year two. Debtor pays off the note on January 30 of year two. THE YEAR OF INCLUSION OR DEDUCTION PARE CHAPTER 19 interest due on at Debtor pay 292 (d) Debtor offers to pay Lender the $5,000 interest a December 31 of year one but Lender suggests that Debto it on January 2nd of year two, which Debtor does. (e) Debtor pays all five years' interest ($25,000) to Lender in cash on December 31 of year one. (f) Same as (e), above, but Debtor does so because Lender makes it a condition of extending Debtor another loan. (g) Debtor pays year one's $5,000 of interest in cash on January 2nd of year two and, as agreed, pays year two's interest on December 31 of year two. Lawyer renders services to Client which are deductible to Client under, P. $ 162. What result to both Lawyer and Client if both are cash met ndar year taxpayers in each of the following circumstances: (al Tomar conde auto bill fone 000 on December 24 of year one. MR. CF [Th year, ac account receive would the po Comr now, only