Wanda has taken a loan with a bank to establish an accounting practice as a sole practitioner. As n condition of providing the loan, Wanda was required to purchase and make a collateral assignment of a life insurance policy on her life with a death benefit of $2 million. Last year, Wanda paid premiums of $7,200 and the net cost of pure insurance was $5,800. The weighted average amount of the loan outstanding was S 1,230,000.

For last year, what amount could Wanda deduct?

(A) $3,567

(B) S3,967

(C) $4,428

(D) $5,800