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On July 1 of the current year, Marcia purchases a small office building to use...

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Accounting

On July 1 of the current year, Marcia purchases a small office building to use in her business and borrows $320,000. Marcia is required to pay two points on the loan. The loan is secured by property and the changing of the points is an established business practice in the area. The term of the loan is 20 years, beginning on July 1 of the current year. How much, if any, of the points may Marcia deduct in the current year?

A. $160

B. $0

C. $3,200

D. $6,400

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