Question
Ted, who is single, owns a personal residence in the city. He also owns a condo near the ocean. He uses the condo as a
- Ted, who is single, owns a personal residence in the city. He also owns a condo near the ocean. He uses the condo as a vacation home. In March, he borrowed $50,000 on a home equity loan and used the proceeds to acquire a luxury automobile. During the year , he paid the following amounts of interest.
|
| On his personal residence | $15,500 |
| On his condo | 6,200 | |
|
| On the home equity loan | 4,800 |
|
| On credit card obligations | 1,700 |
What amount, if any, must Ted recognize as an AMT adjustment for the year?
|
| a. | $0 |
|
| b. | $4,800 |
|
| c. | $6,200 |
|
| d. | $11,000 |
I chose B. It was wrong but I would like to know what the correct answer was.
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
4th edition
978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730
