9. Matthew borrows $250,000 to invest in bonds. During 2010, his interest on the loan is

$30,000. Matthew’s interest income from the bonds is $10,000. This is Matthew’s only investment income.

a. Calculate Matthew’s itemized deduction for investment interest for this year.

$ ____________

b. Is Matthew entitled to a deduction in future years? __________________________ Explain ________________________________________________________________ _______________________________________________________________________