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Ten years ago, Rick and Carol Ryan, married taxpayers, took out a mortgage of $160,000 to buy their home. In October of the current year,

Ten years ago, Rick and Carol Ryan, married taxpayers, took out a mortgage of $160,000 to buy their home. In October of the current year, when the home had a fair market value of $400,000 and they owed $105,000 on the mortgage, the Ryans took out a home equity loan for $110,000. They used the funds to purchase a sailboat to be used for fun. The sailboat does not qualify as a residence. In 2021, the Ryans paid $4,100 of interest on their original mortgage and $2,350 home equity loan interest. What is the maximum amount of home mortgage interest they can deduct on Schedule A in 2021?

A. $4,100.

B. $2,350.

C. $1,750.

D. $6,450.

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