Jerry and Ann paid the following amounts during the current year: Interest on automobile loan $1,500 Interest

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Question:

Jerry and Ann paid the following amounts during the current year: Interest on automobile loan $1,500 Interest on bank loan (proceeds were used to purchase municipal bonds) $5,000 Qualified home mortgage interest $3,150 What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year?

$3,000

$3,150

$8,000

$4,500

None of these choices are correct.