Indicate the amount (if any) that josh can deduct as ordinary and necessary business deductions in each of the following situations.

(a). josh borrowed $55,500 from the first state bank using his business assets as collateral. he used the money to buy city of blanksville bonds. over the course of a year, josh paid interest of $13,200 on the borrowed funds, but he received $11,400 of interest on the bonds.