Clay incurs $5,000 of investment interest expense related to purchasing Renco Company stock and New Orleans municipal bonds. He receives $6,000 of dividends on the stock and $14,000 of interest on the bonds. The amount of investment interest expense Clay can deduct is:

A. $- 0 -.
B. $1,500.
C. $2,500.
D. $3,500.
E. $5,000.


Answer: B

Business

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