QUESTION 15 1. Sebastian paid interest of $3,500 to Merrill Lynch for borrowing to purchase taxable investments. His investment income for the year is $3,000, consisting of interest income and short-term capital gains. His investment expenses total $600, consisting of advisory fees. What is Sebastian's investment interest deduction on Schedule A? $3,000 $3,500 $2,400 $0 QUESTION 16 1. Which of the following is true of worthless securities? of the securities become worthless at any time during the tax year, the loss is deemed to have occurred on the last day of the tax year The loss is treated as an ordinary loss. of the securities are no longer listed in the stock/security exchanges, they are considered worthless The disposition is deemed to have occurred on the day the securities are determined to be worthless. I QUESTION 17 1. In the current year, Nguyen has taxable income of $20,000. He also has a $22,000 net operating loss (NOL) from the previous year that he is carrying forward to the current year. How much of the NOL can Nguyen use in the current year? $16,000 $17,600 $20,000 $22.000