Question $20$

$5$ pts

This year, Carol, a single taxpayer, prochased a vacabice boeer for $$400,000$ using a beese equity loan of $$350,000$ on ber priscipal residence. She has no other debt on ber principal residence. Carol paid $$16,000$ of interest on the debt this year. How moch of this interest is deductible assuming that Carol itemizes her deductions?

$$0$

$$10,000$

$$125,000$

$5!6,000$