Dana Paid $13,000 of Investment Interest Expense in a Year

question 29

Multiple Choice

Dana paid $13,000 of investment interest expense in a year in which she earned $4,500 in dividends,$5,400 in interest income,and had a short-term capital gain of $1,000 and a long-term capital gain of $2,200.The capital gains resulted from the sale of stock held as an investment.She has no other investment-related expenses.What is her maximum deduction for investment interest expense if Dana makes the proper elections to raise her ceiling as high as possible?

• A)$5,400
• B)$9,900
• C)$13,100
• D)$13,000

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Definitions:

Cognitive Therapy

A psychotherapeutic approach aiming to alter dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic procedure.

Behavioral Activation Therapy

A treatment for depression that focuses on engaging patients in activities to improve mood and decrease depressive thoughts.

Psychodynamic Therapy

A therapeutic approach that emphasizes understanding the psychological roots of emotional suffering through introspection and self-examination.

Learned Helplessness

The perception, based on past experiences, that one has no control over one’s reinforcements.