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What is the amount of interest expense that jeff can deduct

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Problem 1: June 30, Year 1, Jeff, who uses the cash method of accounting and is not subject to the business interest deduction 30% limitation, borrowed $15,000 from a bank for use in his business. Jeff was to repay the loan in one payment with interest on December 30, Year 1. On December 30, Year 1, he renewed that loan plus the interest due. The new loan was for $17,000. What is the amount of interest expense that Jeff can deduct for Year 1?

Reference no: EM132774713

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