Raul Is Married and Files a Joint Tax Return

question 69

Multiple Choice

Raul is married and files a joint tax return.His current investment interest expense of $95,000 is related to a loan used to purchase a parcel of unimproved land being held as an investment.Income from investments [dividends (not qualified) and interest] total $18,000.Raul paid and deducted $5,000 of real estate taxes on the unimproved land.He also has a $4,500 net long-term capital gain from the sale of another parcel of unimproved land.Raul's maximum investment interest deduction for the year is:

• A)$95,000.
• B)$18,000.
• C)$17,500.
• D)$13,000.
• E)None of these.

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Definitions:

Work Cells

Small, self-contained production units within a factory, designed to manufacture a specific product or component efficiently.

Direct Labour Cost

The cost associated with the work done by those directly involved in the manufacturing of products or the provision of services.

Employee Participation

The involvement of employees in decision-making processes and activities within an organization to improve engagement and performance.

Machine Utilization

The ratio of the actual operating time of a machine to the total available time, reflecting the efficiency of using production equipment.