In 2017, Mario Earned $9,000 in Net Investment Income and Incurred

question 178

Multiple Choice

In 2017, Mario earned $9,000 in net investment income and incurred $14,000 of investment interest expense. Mario paid off the loan in early 2018, so he only paid $2,000 of investment interest expense in 2018. He earned $10,000 of net investment income in 2018. How much investment interest expense can Mario deduct in 2018?

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

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Definitions:

Key Economic Role

A crucial function or position that significantly affects the economic performance or structure of a society or sector.

Artificial Insemination

A fertility treatment method involving the direct insertion of sperm into a woman's uterus to facilitate conception without sexual intercourse.

Surrogate Motherhood

An arrangement whereby a woman agrees to carry and give birth to a child for another person or couple, who then becomes the child's legal parents.

In Vitro Fertilization

A medical procedure whereby an egg is fertilized by sperm in a laboratory dish, and the resulting embryo is then transferred to the uterus for pregnancy.