Mr. and Mrs. Allen made the following interest payments. Determine their deduction for each payment.a. $28,000 on a $400,000 acquisition mortgage secured by their personal residence.b. $5,000 on a $60,000 second mortgage secured by their personal residence. The Allens used the proceeds to pay off credit card debt and take a second honeymoon.c. $2,400 on credit card debt.d. $1,500 on a bank loan incurred to purchase a new family car.e. $1,890 on an unsecured bank loan incurred to pay for a new roof on their personal residence.
What will be an ideal response?
a. $28,000
b. $0
c. $0
d. $0
e. $0 (Debt not secured by the personal residence.)
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