Twelve years ago, Mr. Drake incurred a $790,000 mortgage to purchase his principal residence. Last year, he took out a $32,000 loan secured by his considerable equity in the residence and used the proceeds to send his daughter to Stanford University. Which of the following statements is true? Multiple Choice Mr. Drake can deduct the interest paid on both his first and second mortgages as an above-the- line deduction. Mr. Drake can report the interest paid on both his first and second mortgages as an itemized deduction. Mr. Drake can report the interest paid on his first mortgage as an above-the-line deduction and the interest paid on his second mortgage as an itemized deduction. Mr. Drake can report the interest paid on his first mortgage as an itemized deduction