please specify whether interest is deductible or not.

Case C: Sam Smith borrowed $530,000 and invested the entire loan proceeds in publicly-traded securities. After 8 months, the securities' value dropped to $300,000. At this point, Sam Smith sold the securities and used the proceeds to reduce the loan to $230,000. Since he no longer owns the securities, can Sam Smith deduct the interest on the remaining loan amount of $230,000? Explain your conclusion. Case D: Cole Sands borrowed $200,000 and used the funds to acquire an income-producing property. He then sold the property for $400,000. He used the proceeds to acquire two properties: property A cost $230,000 and property B cost $170,000. How will the $200,000 in borrowing be linked to the two properties? Case E: Barbara Cornel owned securities that had a current fair market value of $800,000. Using her margin balance available from her stockbroker, she borrowed $200,000 to finance a ring purchase to give to her mother. She paid $6,600 interest on it, during the time period when the margin loan was outstanding. Can she deduct this interest against the $17,000 income earned during this period on her securities? Explain your conclusion