Problem 7-58 (LO 7-) (Algo) George recently received a great stock tip from his friend,...
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Problem 7-58 (LO 7-) (Algo) George recently received a great stock tip from his friend, Mason George didn't have any cash on hand to invest, so he decided to take out a $33,000 loan to facilitate the stock acquisition. The loan terms are 8 percent interest with interest-only payments due each year for five years. At the end of the five-year period the entire loon principal is due. When George closed on the loan on April 1, 2021 he decided to invest $19,800 in stock and to use the remaining $13,200 to purchase a four-wheel recreation vehicle George is unsure how he will treat the interest paid on the $33,000 loan. In 2021, George paid $1,980 interest expense on the loan. (Hint. Visit https://www.is.902/ and consider IRS Publication 550.) What amount may he deduct as interest in 2021? Deductible interest
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