Walter Pays Interest Expense of $2,100 to Acquire His Investment

Multiple Choice

Walter pays interest expense of $2,100 to acquire his investment portfolio during the current year. Walter receives $5,000 in interest from investments in General Motors and Xerox bonds, and $2,500 in interest from investments in City of San Francisco bonds. How much may Walter deduct for the current year?

A) $- 0 -
B) $ 700
C) $1,050
D) $1,400
E) $4,200