Brandon and Jane Forte File a Joint Tax Return and Decide

question 38

Multiple Choice

Brandon and Jane Forte file a joint tax return and decide to itemize their deductions. The Forte's income for the year consists of $120,000 in salary, $1,000 interest income, $1,500 nonqualifying dividends, and $1,100 long-term capital gains. The Forte's expenses for the year consist of $3,000 investment interest expense and $900 tax preparation fees. Assuming that the Forte's marginal tax rate is 30% and they make no special elections, what is the amount of investment interest expense deduction for the year?

• A) Zero.
• B) $1,000.
• C) $2,500.
• D) $3,000.
• E) None of the choices are correct.

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Definitions:

Hostile Work Environment

Refers to a workplace in which the behavior, practices, or policies have created a profoundly uncomfortable, scary, or harassing atmosphere for one or more employees.

Stressors

External stimuli or situations that cause stress in individuals, potentially impacting their physical or mental health.

Concept of Stress

The psychological perception of pressure or tension resulting from challenging situations or demanding circumstances.

Workplace Aggression

Behaviors in a work setting that are intended to harm or coerce others, including verbal abuse, physical threats, or other forms of intimidation.