In 2018,Mario Earned $9,000 in Net Investment Income and Incurred

question 108

Multiple Choice

In 2018,Mario earned $9,000 in net investment income and incurred $14,000 of investment interest expense.Mario paid off the loan in early 2019,so he only paid $2,000 of investment interest expense in 2019.He earned $10,000 of net investment income in 2019.How much investment interest expense can Mario deduct in 2019?

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

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Definitions:

Action

The act or process of doing something, typically to achieve an objective or accomplish a goal, often requiring decision-making and initiative.

Practice

The repeated exercise or application of an activity or skill to achieve proficiency.

Entrepreneurship

The process of initiating a business or businesses, facing financial dangers with the expectation of profit.

Serial Entrepreneur

A person who repeatedly starts new businesses, moving from one venture to another, and often leveraging the experiences and capital from previous successes.