For each of the following questions, assume you are in the 10% tax bracket. In other words, your marginal tax rate is 10% so an additional dollar of taxable income will result in an increase of tax liability by $0.10 or 10 cents. What is the correct classification of $500 paid in primary home mortgage interest and what is its impact on your tax liability? a. Exclusion and $0 b. Adjustment and $0 c. Taxable income and $50 d. Allowable itemized deduction and $50 For each of the following questions, assume you are in the 10% tax bracket. In other words, your marginal tax rate is 10% so an additional dollar of taxable income will result in an increase of tax liability by $0.10 or 10 cents. What is the correct classification of $500 paid in primary home mortgage interest and what is its impact on your tax liability? a. Exclusion and $0 b. Adjustment and $0 c. Taxable income and $50 d. Allowable itemized deduction and $50