Mrs. Carr made the following interest payments. Determine the extent to which she can deduct each payment on her Form 1040.

a. $21,000 on a $280,000 mortgage incurred to construct (and secured by) her personal residence.

Itemized deduction

b. $3,000 on a $34,000 second mortgage secured by her personal residence. Mrs. Carr used the proceeds to pay off her credit card debt.

Itemized deduction

c. $2,290 on credit card debt.

Itemized deduction

d. $15,000 on a $200,000 bank loan incurred to purchase inventory for her sole proprietorship.

Itemized deduction

e. $1,610 on a bank loan incurred to purchase a car for her son.

Itemized deduction