Stephanie,a taxpayer in the 28% marginal tax bracket,borrows $100,000 at 7% interest to invest in 6% tax-exempt municipal bonds (annual loan interest expense is $7,000).What is Stephanie's interest expense deduction?
a.$0
b.$1,000
c.$6,000
d.$7,000

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The Answer of Stephanie,a taxpayer in the 28% marginal tax bracket,borrows $100,000 at 7% interest to invest in 6% tax-exempt municipal bonds (annual loan interest expense is $7,000).What is Stephanie's interest expense deduction?
a.$0
b.$1,000
c.$6,000
d.$7,000

Stephanie,a Taxpayer in the 28% Marginal Tax Bracket,borrows $100,000 at 7