1. 2020 was a big year for William. Among other things, he purchased his first house. William paid the following items in 2020: (1) $1,600 interest on a car loan; $1,000 for points paid to secure home mortgage for his new house (3) $6,500 in interest on a $100,000 home mortgage on his new house (4) $2,000 for interest on bank loan (loan proceeds were used to purchase tax-exempt municipal bonds; (5) $500 interest on credit card debt. Based solely on the acts above, what is the maximum amount that William can utilize as interest expense in calculating itemized deductions for $2020?
   1. $6,500
   2. $7,500
   3. $9,100
   4. $9,600
   5. $11,100

2. During 2020, the IRS audited Sams 2019 tax return and issued an assessment for $6,350 consisting of the following: (1) Additional federal income tax of $5,000; (2) Penalty of $500; and (3) Interest of $850. This payment to the IRS will allow Sam to increase his itemized deductions by how much?
   1. $-0-
   2. $5,000
   3. $850
   4. $1,350
   5. $5,500

3. Harriet has adjusted gross income (AGI) of $100,000 for 2020. On 9-1-20, she made a contribution to her church of $80,000 in cash. How much can she claim as a charitable contribution deduction in 2020 after considering any applicable limitation? Do not consider any additional deduction allowed by the CARES Act on account of the COVID pandemic.
   1. $80,000
   2. $60,000
   3. $50,000
   4. $30,000
   5. $20,000