In 2015 Mario Earned $9,000 in Net Investment Income and Incurred

question 121

Multiple Choice

In 2015 Mario earned $9,000 in net investment income and incurred $14,000 of investment interest expense.Mario paid off the loan in early 2016 so he only paid $2,000 of investment interest expense in 2016.He earned $10,000 of net investment income in 2016.How much investment interest expense can Mario deduct in 2016?

• A)$2,000
• B)$10,000
• C)$7,000
• D)$0

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Definitions:

Lumbar

Pertaining to the lower part of the back or the five vertebrae in the lower spine.

Cervical

Pertaining to the neck or cervix in the human body.

Atlas

The first cervical vertebra of the spine, supporting the skull and enabling head movements.