Ask Question
BusinessBusiness
22 May, 17:59

Ted pays $2,100 interest on his automobile loan, $120 interest on a loan to purchase a computer for personal use, $630 interest on credit cards, and $1,100 investment interest expense. ted has net investment income of $850. ted's deductible interest is

+5
Answers (2)
  1. 22 May, 19:48
    0
    A. $850

    Explanation:

    The answer is net investment income of $850. This is because the investment interest expense to the extent of net investment income is deductible. The others listed are not deducted. The net investment income can either be capital gains, interest or dividends. When the expenses is less than net investment income, all investment interest expense is deductible and when interest expense is more than investment income, only expenses up to net investment income amount is deducted.
  2. 22 May, 20:39
    0
    The net Investment income is $850

    Explanation:

    Given that,

    Ted pays $2100 interest loan for automobile

    purchased a computer for personal use = $120

    interest on credit cards = $630

    Investment interest expense = $1100

    Ted net investment income of $850.

    This is true, because the interest expense of the investment to the net investment income is deducted. The others things listed are not deducted.

    The net investment income can either be interest, dividends, or capital gains, when the interest expense is higher than investment income, only expenses up to net investment income amount is deducted. When the expenses is lower or lesser than net investment income, the investment interest expense is deductible.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Ted pays $2,100 interest on his automobile loan, $120 interest on a loan to purchase a computer for personal use, $630 interest on credit ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Select all that apply. Information on a résumé includes each of the following: date of birth education past employment references
Answers (1)
4. What is risk tolerance? ...
Answers (1)
What steps can Booker take to improve his credit score? Check all that apply. make all of his loan and credit card payments on time apply for more credit cards check his credit history for accuracy avoid making payments on his loans find a second
Answers (1)
Swifty Corporation's allowance for uncollectible accounts was $187500 at the end of 2017 and $180500 at the end of 2016. For the year ended December 31, 2017, Swifty reported bad debt expense of $32800 in its income statement.
Answers (1)
Aiyanna's pizzeria faces a linear downward sloping demand curve and is charging a very high price per pizza initially. They are doing very little business. Aiyanna decides to lower pizza prices 5% per week for an indefinite period of time.
Answers (1)
New Questions in Business
Which of the following is a disadvantage of the sole proprietorship form of ownership
Answers (2)
Products that are essential for life, such as water or groceries, yield more marginal utility than rare products, such as diamonds or luxury vehicles. A. True B. False.
Answers (1)
Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual cost.
Answers (1)
Which of the following is true of internal recruiting? a. It increases recruitment time and costs. b. It targets job applicants that do not currently work for the organization. c. It improves employee commitment and morale. d.
Answers (2)
In a perpetual average cost system: a. The average is determined by dividing the total number of units sold by the cost of units purchased during the period. b. A new weighted-average unit cost is calculated each time additional units are purchased.
Answers (1)
Home » Business » Ted pays $2,100 interest on his automobile loan, $120 interest on a loan to purchase a computer for personal use, $630 interest on credit cards, and $1,100 investment interest expense. ted has net investment income of $850.
Sign Up Forgot Password?