In 2007, 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 2007 is
- $0
- $100,000
- $400,000
- $500,000