Jerry and Ann Paid the Following Amounts During the Current

question 19

Multiple Choice

Jerry and Ann paid the following amounts during the current year: $\begin{array}{llcc} \text { Interest on automobile loan} &\$1,500\\ \text {Interest on bank loan (proceeds were used to purchase municipal bonds) } &\$5,000\\ \text { Qualified home mortgage interest } &\$3,150\\\end{array}$
What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year?

• A)$6,500
• B)$3,150
• C)$4,650
• D)$8,150
• E)None of these

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