Exercise 10-5 (Algorithmic) (LO. 2) Troy's financial records for the year reflect the following: Interest income from bank savings account $1,160 Taxable annuity receipts 2,320 City ad valorem property tax on investments 174 Investment interest expense 4,060 Calculate Troy's net investment income and his current investment interest deduction. How is a deduction for any potential excess investment interest treated? Troy's net investment income is $ 3,306 and his investment interest deduction is: investment interest expense not deducted this year is carried forward . Any potential excess Exercise 10-6 (Algorithmic) (LO. 2) Miller owns a personal residence with a fair market value of $370,100 and an outstanding first mortgage of $296,080, which was entirely used to acquire the residence. This year Miller gets a home equity loan of $18,505 to purchase a new fishing boat. How much of this mortgage debt is treated as qualified residence indebtedness