Question $8(8$ points$)$

Abbie and Avery are married. They own $3$ houses. They use one as their primary residence and use the other two as vacation homes. Each house a mortgage. The mortgage on their primary residence has a balance of $$500,000,$ the two vacation homes have mortgages of $$400,000$ and $$600,000$ respectively. The interest rate on each mortgage is $5\%.$ The interest expense on the mortgages are $1-$ principal residence $25,000,2-$ vacation home $1-20,000,$ and vacation home $2-30,000.$ In addition, they invest in the stock market and have borrowed $$100,000$ to invest in securities$.$ They pay their broker $$7,000$ in interest expense for the year. During the year they earn $$3,000$ of short$-$term capital gains and $$8,000$ of long$-$term capital gains. How much interest expense will they be able to deduct on their tax return for the year based on these loans? Show your computation.