Murphy has a brokerage account and buys on the margin, which resulted in an interest expense of

Question:

Murphy has a brokerage account and buys on the margin, which resulted in an interest expense of $20,000 during the year. Income generated through the brokerage account was as follows:
Municipal interest ........................................... $ 50,000
Taxable dividends and interest ............................ 350,000
How much investment interest can Murphy deduct?