MsRuang Owns a Principal Residence Subject to an $817,000 Acquisition

question 4

Multiple Choice

Ms.Ruang owns a principal residence subject to an $817,000 acquisition mortgage.The home has an $875,000 appraised FMV.What is the maximum home equity debt that Ms.Ruang could incur for federal tax purposes?

• A)$183,000
• B)$100,000
• C)$58,000
• D)$0

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