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27. During the year Dana incurred $13,000 of investment interest expense in a year in which she earned $4500 in dividends, $5400 in interest income,
27. During the year Dana incurred $13,000 of investment interest expense in a year in which she earned $4500 in dividends, $5400 in interest income, and had a short-term capital gain of $1000 and a long -term capital gain of $2200. The capital gains resulted from the sale of stock held as an investment. What is her maximum deduction for investment interest expense if Diana makes the proper elections?
a $5,400
b. $9,900
c. $12,100
d. $13,000
Please show how you arrive at the answer so I can better check my work, Thank you
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