Doug and Sue Click File a Joint Tax Return and Decide

Multiple Choice

Doug and Sue Click file a joint tax return and decide to itemize their deductions. The Clicks' income for the year consists of $90,600 in salary, $2,300 interest income,and $860 long-term capital loss. The Clicks' expenses for the year consist of $1,200 investment interest expense. Assuming that the Clicks' marginal tax rate is 35 percent, what is the amount of their investment interest expense deduction for the year?

A) $1,440.
B) $1,200.
C) $2,300.
D) $2,060.
E) None of the choices are correct.