Jerry and Ann Paid the Following Amounts During 2013: Interest $\$ 1,500$

question 46

Multiple Choice

Jerry and Ann paid the following amounts during 2013: Interest on automobile
loan
$\$ 1,500$
Interest on bank loan (proceeds were used to purchase
municipal
bonds)
$\$ 5,000$ Qualified home mortgage
interest
$\$ 3,000$ What is the maximum amount they can use as interest expense in calculating itemized deductions for 2013?

• A)$3,000
• B)$3,150
• C)$4,500
• D)$8,000
• E)None of the above

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Definitions:

Trade Surplus

A situation where a country's exports exceed its imports, leading to a positive balance of trade.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries and generate revenue.

Allocation

The process of distributing resources or tasks among people or groups based on a specific criteria.

Efficient Industries

Industries that achieve maximum productivity with minimum wasted effort or expense.