Taxpayer paid $17,100 of interest on her $300,000 acquisition debt for her home (fair market value of $500,000), $4,200 of interest on her $70,000 home-equity debt used to buy a new boat and car, $1,020 of credit card interest, and $4,040 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,020 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year?

Taxpayer paid $17,100 of interest on her $300,000 acquisition debt for her home (fair market value of $500,000), $4,200 of interest on her $70,000 home-equity debt used to buy a new boat and car, $1,020 of credit card interest, and $4,040 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,020 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year?

$25,340

$21,140

$22,760

$22,320

$22,160