True or False. Please answer correctly

On July 1, Mr. K, a calendar-year, cash-basis sole proprietor, paid $3,000 in commitment fees to his bank to have business funds made readily available to him over a period of 3 years as needed. Mr. K did not borrow any of these funds in the current year. Mr. K may deduct $500 of these fees as interest on his Schedule C for the current year