Question 16 of 100. Ella's main home was foreclosed in 2021. Ella received Forms 1099-C reporting the following amounts of canceled debt: $10,000 in acquisition debt. $5,000 of a home equity loan. Ella used the funds from this loan to purchase a new car. How much of this cancellation of debt is excludable from Ella's 2021 income under the qualified principal residence exclusion? $0. The qualified principal residence exclusion does not apply to debt canceled in 2021. $5,000. $10,000. $15,000