Answer:
The answer is: A) $760
Explanation:
Clyde can deduct the full amount he paid in insurance ($600) even if the insurance policy begins in July 1 and ends in twelve months.
He can only deduct four months of interest paid to the US Bank (September - October - November - December) which is $160.
To calculate we multiply the total interest paid by one third (four months are one third of a year) = $480 x 0.333 = $160
Finally we add both deductible expenses $600 + $160 = $760
