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Emilia owns a successful clothing store chain with multiple stores within the Midwest region. Although...

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Finance

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Emilia owns a successful clothing store chain with multiple stores within the Midwest region. Although consistently profitable, she is becoming concerned about the lack of diversification in her business's investment. To help her diversify outside of her core business operations, Emilia borrowed $300,000 at an annual interest rate of 3.2% on January 1, 2020 to use on alternative investments. She used $100,000 of the loan to invest in the stock of a restaurant chain, $100,000 of the loan to invest in the corporate bonds of several wind energy companies, and $100,000 of the loan to invest in bonds issued by the City of Philadelphia to build three new high schools. How much of the interest incurred on the loan can Emilia deduct in 2020

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