The options are the same for each question

Discussion Question 6-25 (LO. 3) Jarret owns City of Charleston bonds with an adjusted basis of $190,000. During the year, he receives Interest payments of $3,800. Jarret partially financed the purchase of the bonds by borrowing $100,000 at 5% interest. Jarret's interest payments on the loan this year are $4,900, and his principal payments are $1,100. How much reportable interest income does Jarret have this year? $3,800 X $0 $1,100 y Work $3,800 $4,900 often difficult to show a direct relationship between borrowings and investment in tax-exempt securities. $6,100 b. How much can Jarret deduct as interest expense this year? $1,100 X Feedback Check My Work Incorrect