Harold,a Cash Basis Taxpayer,borrows $65,000 for His Business on a 2-Year

Harold,a cash basis taxpayer,borrows $65,000 for his business on a 2-year note from First City Bank on December 1,2017.To close on the loan agreement,Harold is required to prepay interest of $4,800 on December 1.How much interest can Harold deduct in 2017?

A) $- 0 -
B) $200
C) $400
D) $2,400
E) $4,800