L$-$x

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U$$miren$-$

Nornimer

Exercise $10-19($LO$.5)$

Miler owns a personal residence with a fair market value of $$195,000$ and an outstanding first mortgage of $$157,500,$ which was used entirely to acquire the residence. This year, Miller gets a home equity loan of $$10,000$ to purchase a new fishing boat for personal use.

How much of this mortgage debt is treated as qualified residence indebtedness?

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