Kerri, a single taxpayer who itemizes deductions on Schedule A, incurs $12,750 of interest expense on funds borrowed to acquire taxable bonds. Kerri also has $16,500 of taxable interest income for the year. Assume Kerri is in a 30% marginal tax bracket. How much of the interest expense can she deduct? Assuming the same facts except that the $16,500 of investment income is a qualifying dividend rather than taxable interest income, what should Kerry do if she wants to minimize her current year tax liability?