Indicate the amount $($if any$)$ that Josh can deduct as an ordinary and necessary business deduction in each of the following situations.

Note: Leave no answers blank. Enter zero if applicable.

Problem $9-47$ Part$-$a $($Algo$)$

a$.$ Josh borrowed $$87,000$ from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $$13,300$ on the borrowed funds, but he received $$12,000$ of interest on the bonds.