Doug and Sue Click File a Joint Tax Return and Decide

question 13

Multiple Choice

Doug and Sue Click file a joint tax return and decide to itemize their deductions. The Click's income for the year consists of $90,000 in salary, $2,000 interest income, $800 long-term capital loss. The Click's expenses for the year consist of $1,500 investment interest expense. Assuming that the Click's marginal tax rate is 35 percent, what is the amount of their investment interest expense deduction for the year?

• A) $1,200.
• B) $1,500.
• C) $2,000.
• D) $2,300.
• E) None of the choices are correct.

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Definitions:

Autonomic Ganglia

Ganglia containing the nerve cell bodies of the autonomic division of the nervous system.

Ganglionic Synapse

A junction between neurons in a ganglion, where neurotransmission occurs.

Preganglionic Neuron

Autonomic neuron that has its cell body located within the central nervous system and sends its axon through a nerve to an autonomic ganglion, where it synapses with postganglionic neurons.

Postganglionic Axons

The axons of neurons that conduct impulses away from a ganglion in the peripheral nervous system to a target organ.