Personal Expense (LO. 6) During the current year, Maureen pays Universal Brokerage House $1,800 for investment interest expense. The fee is not directly related to any particular investment owned by Maureen. The company provides her with the following summary of her investments: Type of Security Fair Market Value of Securities Income Earned Taxable $76,000 $6,700 Tax-exempt $24,000 $3,300 Do not round your intermediate computations. Complete a letter to Maureen explaining the proper tax treatment of the $1,800 she paid for investment interest expense. Dear Maureen, Regarding the investment interest expense fees you paid us, Universal Brokerage House, we are writing to outline tax treatment options. First, expenses indirectly related to more than one class of income are allocated among the various classes of income by using a reasonable accounting method. One method of allocating indirect income expenses is based on the fair market value of your total securities. If this method is chosen, you should allocate investment expenses of $ X to your taxable securities and $ to your tax-exempt securities. Your deduction for the year would be $ Another method of allocating indirect income expenses is based on total investment income. If this method is chosen, you will allocate investment expenses of $ to your taxable securities and $ to your tax-exempt securities. Your deduction for the year would be $