eBook\ Problem 11-63 (LO. 10, 11)\ In 2023, Kathleen Tweardy incurs

$30,000

of interest expense related to her investments. Her investment income includes

$7,500

of interest,

$6,000

of qualified dividends, and a

$12,000

net capital gain on the sale of securities. Kathleen asks you to compute the amount of her deduction for investment interest, taking into consideration any options she might have.\ a. If Kathleen elects not to treat the capital gain and qualified dividends as investment income for purposes of the investment interest expense limitation, her deduction will be

$

\ b. If Kathleen elects to treat the capital gain and qualified dividends as investment income for purposes of the investment interest expense limitation, her deduction will be

$

\ c. In addition, Kathleen wants your suggestions as to any tax planning alternatives that are available. Complete the letter to her that contains your advice.\ SWFT, LLP\ 5191 Natorp Boulevard\ Mason,

OH45040

\ February 28, 2024\ Ms. Kathleen Tweardy 11934 Briarpatch Drive\ Midlothian, VA 23113\ Dear Ms. Tweardy:

In 2023, Kathleen Tweardy incurs $30,000 of interest expense related to her investments. Her investment income includes $7,500 of interest, $6,000 of qualified dividends, and a $12,000 net capital gain on the sale of securities. Kathleen asks you to compute the amount of her deduction for investment interest, taking into consideration any options she might have. a. If Kathleen elects not to treat the capital gain and qualified dividends as investment income for purposes of the investment interest expense limitation, her deduction will be $ b. If Kathleen elects to treat the capital gain and qualified dividends as investment income for purposes of the investment interest expense limitation, her deduction will be $ c. In addition, Kathleen wants your suggestions as to any tax planning alternatives that are available. Complete the letter to her that contains your advice