1) Luke and Ann are married and file a joint return. They are considering purchasing a personal residence that will generate two deductions: $10,000 in home mortgage interest and $8,000 in real estate taxes. Their marginal tax rate is 24%, their average tax rate is 19%, and their effective tax rate is 14.4% What is the total tax savings if Larry and Ally purchase the residence? A) $3,420 O B) $2,400 C) $4,320 D) $2,592