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,and they incurred no investment expenses.Which of the following statements is true?

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