In 2019, Perla earned $10,000 in net investment income and incurred $15,000 of investment interest expense. Perla paid off the loan in early 2020, so he only paid $3,000 of investment interest expense in 2020. She earned $12,000 of net investment income in 2020. How much investment interest expense can Perla deduct in 2020?

A) $0

B) $3,000

C) $7,000

D) $8,000

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