This year, Dana, a single taxpayer, purchased a vacation home for $200.000 and made improvements to the kitchen in her principal residence for $50.000 using a home equity loan of $250.000 on her principal residence. She has no other debt on her principal residence. Dana paid $12.500 of interest on the debt this year. How much of this interest is deductible assuming that Dana itemizes her deductions? $2,500 $0 510,000 $12.500 None of these