Exercise $11-33($Algorithmic$)($LO$.10)$

Troy's financial records for the year reflect the following:

Interest income from bank savings account $$1,560$

Taxable annuity receipts $3,120$

City ad valorem property tax on investments $234$

Investment interest expense $5,460$

Calculate Troy's net investment income and his current investment interest deduction. How is a deduction for any potential excess investment interest treated?

Troy's net investment income is $fill in the blank $1$

and his investment interest deduction is $fill in the blank $2$

$.$ Any potential excess investment interest expense not deducted this year is

carried forward

$.$