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

question 86

Multiple Choice

Takesha 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,assuming Takesha does not make any elections?

• A)$5,400
• B)$6,400
• C)$13,100
• D)$13,000