Bender Borrows $200,000 from His Uncle's Bank and Invests the Proceeds

question 79

Multiple Choice

Bender borrows $200,000 from his uncle's bank and invests the proceeds in various corporate bonds. He pays $9,000 in interest on the loan during the current year. Bender reports investment income of $7,500 in the current year. How much of the interest expense is deductible by Bender?

• A)$4,500
• B)$7,500
• C)$9,000
• D)None of this interest is deductible.

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