Amanda purchased a home for $1,000,000 in 2016. She paid $200,000 cash and borrowed the remaining $800,000. This is Amanda's only residence. Assume that in year 2022, when the home had appreciated to $1,500,000 and the remaining mortgage was $600,000, interest rates declined and Amanda refinanced her home. She borrowed $1,000,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of acquisition indebtedness for the purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.)
A. $600,000.
B. $1,100,000.
C. $750,000.
D. $1,000,000.
Answer: A
You might also like to view...
A company accounts for a change in reporting entity as a prospective adjustment so that all the financial statements are presented for the same entity
Indicate whether the statement is true or false
The objective of SAS 99 is to seamlessly blend the auditor's consideration of fraud into all phases of the audit process
Indicate whether the statement is true or false
A restaurant decides to offer a lunch buffet instead of a la carte ordering. Which of the following is not a co-production benefit of the restaurant’s decision?
a. Increase in cost efficiency from being able to serve more customers without needing more waitstaff b. Increase in guests’ perceived control since they can choose their favorite foods in their preferred quantities from the buffet c. Increase in production efficiency from utilizing a kitchen that might otherwise be more idle d. Increase in inventory efficiency from minimizing food waste
How much of the revenue for charitable nonprofits comes from government funds?
A. one half B. one third C. two fourths D. three fourths