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Required information Problem 7-56 (LO 7-3) (Algo) [The following information applies to the questions displayed below.] Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $3,875 in investment expenses. They also incur $6,125 of investment interest expense during the year. The Porters' income for the year consists of $187,500 in salary and $5,125 of interest income. Problem 7-56 Part-a (Algo) a. What is the amount of the Porters' investment interest expense deduction for the year? Investment interest expense deduction $ 10,938 Problem 7-58 (LO 7-3) (Algo) George recently received a great stock tip from his friend, Mason. George didn't have any cash on hand to invest, so he decided to take out a $30,000 loan to facilitate the stock acquisition. The loan terms are 8 percent interest with interest-only payments due each year for five years. At the end of the five-year period the entire loan principal is due. When George closed on the loan on April 1, 2020, he decided to invest $21,000 in stock and to use the remaining $9,000 to purchase a four-wheel recreation vehicle. George is unsure how he will treat the interest paid on the $30,000 loan. In 2020, George paid $1,800 interest expense on the loan. (Hint Visit https://www.irs.gov/ and consider IRS Publication 550.) What amount may he deduct as interest in 2020? Deductible interest