Problem #2 (10 points) In 2018, Ross, who is married, purchased a personal residence for $700,000 and took out a mortgage of $600,000 on the property. In May of the current year 2019 when the residence had a fair market value of $780,000, Ross took out a home equity loan for $95,000. He used the funds to purchase a BMW for himself and a Lexus SUV for his wife. For both vehicles, 100% of the use is for personal use. Ross also paid $7000 in property taxes and $10,000 in State Income Taxes. What is the maximum amount on which Ross can deduct on the home equity loan for interest? What is the maximum amount of State and Property taxes that Ross can deduct on Schedule A Problem # 3 (5 points) Dabney and Nancy are married, both gainfully employed, and have two children who are 3 and 6 years old. Dabney's salary is $15,000 while Nancy's salary is $23,800. During the year, they spend $7,000 for child care expenses that are required so both of them can work outside of the home. Calculate the credit for child and dependent care expenses