Margaret Lindley paid $15,020 of interest on her $300,200 acquisition debt for her home (fair market value of $500,200), $4,020 of interest on her $30,020 home-equity debt used to buy a new boat and car, $1,020 of credit card interest, and $3,020 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,020 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year?

Multiple Choice