Jarret owns city of Savannah bonds with an adjusted basis of $100000.during the year,he receives interest payments of $3000.jarret partially financed the purchase of the bonds by borrowing $80000 at 5% interest. Jarret's interest payments on the loan this year are $4000,and his principal payments are $900.
a. should Jarret report any interest income this year?
b. Can Jarret deduct any interest expense this year?