Which of the following statements is false? A. The interest tracing rules require that the proceeds from home equity debt be used to acquire or improve the residence in order for the interest thereon to be deductible. B. The interest tracing rules require interest expense to be allocated in the same manner in which the proceeds from the loan are used to pay the various types of expenditures. C. Acquisition Indebtedness is debt that is incurred to acquire, construct, or improve a qualified residence. D. By statutory definition, both home equity debt and acquisition debt must be secured by the taxpayer's residence.