2.03.3 Interest Expense (1)

Question 問題
On June 30, 2018, Sally who uses the cash method of accounting, borrowed $25,000 from a bank for use in her business. Sally was to repay the loan in one payment with $2,000 interest on December 30, 2018. On December 30, 2018, she renewed that loan plus the interest due. The new loan was for $27,000. What is the amount of interest expense that Sally can deduct for 2018?

A. $0

B. $333

C. $1,000

D. $2,000

The correct answer is 正解は、[A. $0]
利息を含む既存の借入金の返済のために同一の貸主から借り入れを行った場合、既存の借入金に係る利息は控除することができません。