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Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that qualifies as

Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that qualifies as acquisition debt, and both mortgages were incurred before December 15, 2017. This year, the mortgage holders provided the following information:

Mortgage Interest Paid Average Balance of Mortgage
Principal residence $ 44,000 $ 965,800
Vacation home 25,700 358,000

Required: Assume the taxable year is 2021. Compute Mr. and Mrs. Kims qualified residence interest.

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