Teri Pays the Following Interest Expenses During the Year What Is the Amount of Interest Expense That Can Be

question 96

Multiple Choice

Teri pays the following interest expenses during the year: $\begin{array}{|l|r|}\hline\text { Home mortgage interest on personal residence } & \$ 8,500 \\\hline \text { Credit card interest on personal purchases } & 550\\\hline \text { Interest on loans used to purchase investments (Net investment } & \\ \text { income is } \$ 2,000) & 2,400 \\\hline \text { Interest on loans used for a business conducted as a sole } & \\\text { proprietorship }&3,800\\\hline\text { Interest on a credit card used exclusively in the business }&470\\\hline\end{array}$ What is the amount of interest expense that can be deducted as an itemized deduction?

• A)$10,500
• B)$10,900
• C)$14,300
• D)$14,700

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing in order to be enforceable.

Express Contract

A contract in which the terms are explicitly stated and agreed upon by the parties, either verbally or in writing.

Parol Evidence Rule

A legal principle in contract law that prevents parties from presenting extrinsic evidence of terms not included in the written contract.

Oral Evidence

Testimony or information presented in verbal form, as opposed to written or physical evidence, during legal proceedings.