During the current year, lan and Ginny, a married couple who use the cash method of accounting. purchased a principal residence for $340,000. They paid $38,000 dowr and financed the remaining $302,000 of the purchase price with a 30-year morigage. At the closing, they also paid $425 for an appraisal, $550 for a tle search, and 2.5 points representing additional interest over the term of the loan. At the end of the year, lan and Ginny received a statement from the mortgage company indicating that $13,000 of their total monthly payments made during the year represents interest and $1,700 is a reduction of the principal balance. Read the reavirements. a. What is the total amount lan and Ginny may deduct in the current year arising trom the purchase and ownership of their home? an and Ginny may deduct b. What is the treatment of the other itens that are not deductible? $ inthe current year ansing trom, the purchase and ownership of their home. O A. The other closing costs are added to the market value of the home. O B. The other ciosing costs are subtracted trom the cost basis of the home O C. The other closing costs are added to the cost basis of the home. O D. The other closing costs are subtracted from the market value of the home