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 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%, 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 these

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Definitions:

Leisure Time

The period during which an individual is not engaged in work or essential activities, allowing for rest, recreation, or personal pursuits.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period, a measure of economic performance.

Economic Well-being

The level of prosperity and quality of life in an economy, measured by factors such as income, employment, and access to goods and services.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific time period, serving as a broad measure of economic activity.