Ted, Who Is Single, Owns a Personal Residence in the City

question 10

Multiple Choice

Ted, who is single, owns a personal residence in the city. He also owns a condo near the ocean. He uses the condo as a vacation home. In March 2014, he borrowed $50,000 on a home equity loan and used the proceeds to acquire a luxury automobile. During 2014, he paid the following amounts of interest:

$\begin{array}{llr} \text {-on his personal residence } &\$15,500\\ \text { -on the condo } &6,200\\ \text { -on the home equity loan } &4,800\\ \text {-on credit card obligations } &1,700\\\end{array}$





What amount, if any, must Ted recognize as an AMT adjustment in 2014?

• A) $0.
• B) $4,800.
• C) $6,200.
• D) $11,000.
• E) None of the above.

---

Definitions:

Bowlby

A reference to John Bowlby, a British psychologist best known for his work in developing attachment theory, which explores the importance of early emotional bonds between a child and their caregivers.

Evolutionary Forces

Factors that influence the genetic composition of a population through natural selection, gene flow, mutation, and genetic drift.

Infants

Very young children or babies, especially those from birth up to one year old.

Warmth, Love

Feelings of affection, kindness, and care towards others, often characterized by positive emotional connections.