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1. Cathy paid the following interest expense during the current year. Qualified home mortgage interest $4,000 Credit card interest $1,000 Personal bank loan interest $3,000

1. Cathy paid the following interest expense during the current year.


Qualified home mortgage interest $4,000 


Credit card interest $1,000 


Personal bank loan interest $3,000


2. What is the amount of Cathy's interest deduction for the current year?


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