In 2013 Yankuba purchased a home for $300,000 and took out a mortgage for $270,000. By 2016, his mortgage balance was $185,000 and the value of the home was $260,000. Yankuba took a 90,000 home equity loan on which he incurred a $10,000 interest expense in 2016. How much of the interest on the home equity loan is deductible.

Select one:

a. $7,500

b. $0

c. $10,000

d. $8,333