Doug and Sue Click File a Joint Tax Return and Decide

question 55

Multiple Choice

Doug and Sue Click file a joint tax return and decide to itemize their deductions. The Clicks' income for the year consists of $89,000 in salary, $1,500 interest income,and $700 long-term capital loss. The Clicks' expenses for the year consist of $1,450 investment interest expense. Assuming that the Clicks' marginal tax rate is 35 percent, what is the amount of their investment interest expense deduction for the year?

• A)$800.
• B)$1,450.
• C)$1,500.
• D)$2,150.
• E)None of the choices are correct.

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