Dana Paid $13,000 of Investment Interest Expense in a Year

question 29

Multiple Choice

Dana paid $13,000 of investment interest expense in a year in which she earned $4,500 in dividends,$5,400 in interest income,and had a short-term capital gain of $1,000 and a long-term capital gain of $2,200.The capital gains resulted from the sale of stock held as an investment.She has no other investment-related expenses.What is her maximum deduction for investment interest expense if Dana makes the proper elections to raise her ceiling as high as possible?

• A)$5,400
• B)$9,900
• C)$13,100
• D)$13,000

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Definitions:

New York

A state in the northeastern United States, known for its significant cultural, financial, and political influence, with New York City as its most famous city.

Referendum

A Progressive-era reform that allowed public policies to be submitted to popular vote.

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Individuals holding office in governmental institutions, responsible for making and implementing the law.

Popular Vote

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