3. On July 1, 2020, Jake borrowed $315,000 from Bank of America for use in...
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Accounting
3. On July 1, 2020, Jake borrowed $315,000 from Bank of America for use in his business. In October, Jake paid interest for November 1, 2020 - January 31, 2021 of $4,365.
a. How much interest, if any, can Jake deduct in 2020 if his business uses the cash method of accounting for tax purposes?
b. How much interest, if any, can Jake deduct in 2020 if his business uses the accrual method of accounting for tax purposes?
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