Derek and Meredith are married taxpayers. Grey Company is owned as follows: 28% 17% Derek Meredith Sara, Derek’s mother Thatcher, Meredith's father Bob, an unrelated party 25% 15% 15% Grey Company is an accrual-method taxpayer, and Derek and Meredith are cash-method taxpayers. Derek and Meredith each loaned Grey Company $10,000 out of their separate funds. On December 31, 2016, Grey Company accrued interest at 6% on each loan ($600 per loan, $1,200 total). The interest was paid on February 4, 2017. What amount of the interest may Grey Company deduct in 2016?