This year Randy paid $29,500 of interest on his residence. (Randy borrowed $470,000 to buy his residence, which is currently worth $520,000.) Randy also paid $3,000 of interest on his car loan and $4,950 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances? a. Randy received $2,600 of interest this year and no other investment income or expenses. His AGI is $75,000.

b. Randy had no investment income this year, and his AGI is $75,000.