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:

Signature

A person's handwritten mark or its digital equivalent used to signify agreement, consent, or identification.

Movability

The quality of a negotiable instrument that ensures it is mobile and available.

Negotiable Instruments

Negotiable instruments are written orders or unconditional promises to pay a fixed amount of money on demand or at a set time to the bearer or to the order of a specified person.

Consideration

Something of value that is exchanged between parties within a contract, giving it legal validity.