During the current$$ year, Bob and Erin$,$ a married couple who use the cash method of$$ accounting, purchased a principal residence for $ $315$ comma $000.$

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Part $1$

a$.$ What is the total amount Bob and Erin may deduct in the current year arising from the purchase and ownership of their$$ home?

Bob and Erin may deduct

Part $2$

b$.$ What is the treatment of the other items that are not$$ deductible?

A$.$

The other closing costs are subtracted from the market value of the home.

B$.$

The other closing costs are added to the market value of the home.

C$.$

The other closing costs are added to the cost basis of the home.

D$.$

The other closing costs are subtracted from the cost basis of the home.