Miller owns a personal residence with a fair market value of $195,000 and an outstanding first mortgage of 157,500, which was entirely used to acquire the residence. This year Miller gets a home equity loan of $10,000 to purchase new jet skis. How much of this mortgage debt is treated as qualified residence indebtedness?

Note: please provide answers and explanations in Word or Excel as handwritten responses are difficult to read. I appreciate it.