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 since the note is "noninterest-bearing."

Question

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The Answer of 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 since the note is "noninterest-bearing."

On December 1,Robert,a Cash-Method Taxpayer,borrows $10,000 from the Bank for Use