ACCT M50 PRINCIPLES OF INCOME TAXATION PRACTICE EXAM | FREE SOLVED ANSWERS
For 2024, Tarik, a single parent, reported the following amounts relating to his investments:
Net investment income= $ 7,000
Interest expense on a loan to purchase stocks= 3,000
Interest expense on funds borrowed to purchase land for investment= 6,000
What is the maximum amount that Tarik could deduct in 2024 as investment interest expense?
For 2024, Tarik, a single parent, reported the following amounts relating to his investments:
Net investment income= $ 7,000
Interest expense on a loan to purchase stocks= 3,000
Interest expense on funds borrowed to purchase land for investment= 6,000
What is the maximum amount that Tarik could deduct in 2024 as investment interest expense?
Multiple Choice
- a. $1,000
- b. $3,000
- c. $6,000
- d. $7,000
Correct Answer: d. $7,000
Explanation
Investment interest expense is deducible to the amount of net investment income.
ACCT M50 PRINCIPLES OF INCOME TAXATION PRACTICE EXAM FREE SOLVED ANSWERS