Two years ago, Jack Peters borrowed \(\$ 150,000\) from the First National Bank which he used to buy equipment used in his business. Business slowed considerably this year, and Jack was unable to make payments on the loan. To keep the bank from foreclosing on the note and putting his son out of business, Jack's father made several payments on the loan during the year. Of the total payments he made on the loan, \(\$ 10,000\) was attributable to interest and the remainder was applied to reduce the principal balance.

Can Jack's father deduct the \(\$ 10,000\) in interest expense he paid on Jack's loan? Explain.