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	$ 46,000	$ 973,800
Vacation home	26,900	364,000

Required: Assume the taxable year is 2021. Compute Mr. and Mrs. Kims qualified residence interest. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

THIS IS A TAX CLASS