Bender Borrows $200,000 from His Uncle's Bank and Invests the Proceeds

Multiple Choice

Bender borrows $200,000 from his uncle's bank and invests the proceeds in various corporate bonds. He pays $9,000 in interest on the loan during the current year. Bender reports investment income of $7,500 in the current year. How much of the interest expense is deductible by Bender?

A) $4,500
B) $7,500
C) $9,000
D) None of this interest is deductible.