In 2015, Kara Corp. incurred the following expenditures in connection with the repurchase of its stock from shareholders to avert a hostile takeover:
Interest on borrowings used to repurchase stock: $100,000
Legal and accounting fees in connection with the repurchase: $400,000
The total of the above expenditures deductible in 2015 is
a. $0
b. $100,000
c. $400,000
d. $500,000
Answer: B
Tax
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