Question: a. Josh borrowed $70,000 from the First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds.

a. Josh borrowed $70,000 from the First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $11,000 on the borrowed funds, but he received $5,700 of interest on the bonds.

Deductible Amount:

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