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.
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
Problem 29P
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0166d9d2-82c6-4128-9e17-65eeb85c38f4%2F7ee7e3d1-6efd-4e14-bde8-6266bfd332ce%2Foaxf8c9_processed.jpeg&w=3840&q=75)
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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