This Year,Mr

This year,Mr.and Mrs.Lebold paid $3,100 investment interest expense.They earned $4,750 investment income consisting of $1,900 interest and $2,850 qualified dividends.Which of the following statements is true?

A) If the Lebolds elect to treat $1,200 of the qualified dividends as ordinary income not taxed at a preferential rate,they can deduct $3,100 investment interest expense.
B) The Lebolds can deduct $3,100 investment interest expense only if they elect to treat the $4,750 qualified dividends as ordinary income not taxed at a preferential rate.
C) The Lebolds can deduct $3,100 investment interest expense because their investment income exceeds $3,100.
D) The Lebolds' deduction for investment interest expense is limited to $1,900.