Charles Wolfe purchased the following long-term investments at par during the year:
$20,000 general obligation bonds of Burlington County (wholly tax-exempt)
$10,000 debentures of Arrow Corporation
Wolfe financed these purchases by obtaining a $30,000 loan from Union National Bank. For the year, Wolfe made the following interest payments:
Union National Bank Qualified residence interest on home mortgage
Interest on credit card charges
$3,600
3,000 500
Wolfe’s net investment income for the year was $10,000. What amount can Wolfe utilize as interest expense in calculating itemized deductions for the year?
A. $3,000
B. $4,200
C. $4,700
D. $7,100

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)