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10. Michael Myers, CPA, uses tax software to prepare clients' individual income tax returns. While reviewing the computer output, Michael realizes that the schedule's deductible
10. Michael Myers, CPA, uses tax software to prepare clients' individual income tax returns. While reviewing the computer output, Michael realizes that the schedule's deductible investment interest expense is less than the amount paid by the taxpayer and the amount that Michael entered into the computer. Scary! Michael eventually realizes that the computer-generated investment interest expense deduction is correct. What could have caused this shocking result? I. II. The client's investment interest expense exceeds net investment income. The client's qualified residence interest expense reduces the deductible amount of investment interest expense. A. I only. B. II only. C. Both I and II. D. Neither I nor
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