Problem $9-47($LO $9-1,$ LO $9-2)($Algo$)$

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

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a$.$ Josh borrowed $$77,500$ from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $$14,400$ on the borrowed funds, but he received $$11,800$ of interest on the bonds.

a$.$ Josh borrowed $$77,500$ from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $$14,400$ on the borrowed funds, but he received $$11,800$ of interest on the bonds.

a$.$ Josh borrowed $$77,500$ from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $$14,400$ on the borrowed funds, but he received $$11,800$ of interest on the bonds.

a$.$ Josh borrowed $$77,500$ from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $$14,400$ on the borrowed funds, but he received $$11,800$ of interest on the bonds.