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

---

Definitions:

Toxic Material

Toxic material refers to substances that can cause harm to living organisms through chemical reactions or other mechanisms when absorbed, ingested, inhaled, or come into contact with skin.

Product Liability

Legal responsibility of manufacturers and sellers for defects in the goods they provide, leading to injury or damage.

Due Care

Due care refers to the effort made by an individual or entity to avoid harm to other people or their property, acting with the prudence and attention that a reasonable person would exercise in similar circumstances.

Product Liability

The legal liability a manufacturer or trader incurs for producing or selling a faulty product.