Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that qualifies as acquisition debt, and both mortgages were incurred before December 15, 2017. This year, the mortgage holders provided the following information: Principal residence Vacation home Mortgage Interest Paid $ 42,000 24,500 Qualified residence interest Average Balance of Mortgage $ 957,800 352,000 Required: Assume the taxable year is 2022. Compute Mr. and Mrs. Kim's qualified residence interest. Note: Do not round intermediate calculations. Round your final answer to the nearest dollar amount.
Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that qualifies as acquisition debt, and both mortgages were incurred before December 15, 2017. This year, the mortgage holders provided the following information: Principal residence Vacation home Mortgage Interest Paid $ 42,000 24,500 Qualified residence interest Average Balance of Mortgage $ 957,800 352,000 Required: Assume the taxable year is 2022. Compute Mr. and Mrs. Kim's qualified residence interest. Note: Do not round intermediate calculations. Round your final answer to the nearest dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that
qualifies as acquisition debt, and both mortgages were incurred before December 15, 2017. This year, the mortgage holders provided
the following information:
Principal residence
Vacation home
Mortgage
Interest Paid
$ 42,000
24,500
Qualified residence interest
Average
Balance of
Mortgage
$ 957,800
352,000
Required:
Assume the taxable year is 2022. Compute Mr. and Mrs. Kim's qualified residence interest.
Note: Do not round intermediate calculations. Round your final answer to the nearest dollar amount.
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