Helen borrowed $150,000 to acquire a parcel of land to be held for investment purposes. During 2014, she paid interest of $12,000 on the loan. She had AGI of $90,000 for the year. Other items related to Helen's investments include the following:

Investment income .............. $11,000

Long-term capital gain on sale of stock ...... 3,500

Investment counsel fees ............ 100

Helen is unmarried and does not itemize her deductions.

a. Determine Helen's investment interest deduction for 2014.

b. Discuss the treatment of the portion of Helen's investment interest that is disallowed in 2014.