During 2020, Juan and Amabel incurred acquisition debt on their residence of $300,000 and a home equity loan of $120,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively whose interest can be used as an itemized deduction?

Select one:

a.

$1,000,000 and $100,000

b.

$750,000 and $0

c.

$300,000 and $0

d.

$300,000 and $120,000

e.

None of the alternatives is correct