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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Definitions:

Subjective Approach

A perspective or method that relies on personal opinions, interpretations, feelings, or tastes, rather than objective or external facts.

Contract Determination

The process of establishing the terms of a contract, including its obligations, benefits, and conditions, often through negotiation.

Enforcement

The act of compelling compliance with a law, rule, agreement, or order.

Acceptance

In contract law, an expression of agreement to the terms of an offer that results in a binding contract between the parties.