Chapter 5, Problem 24P

To determine

Introduction:Interest is the amount paid for the use of borrowed funds. Interest paid or accrued during the year is deductible by the taxpayer. Type and the amount of deduction depend on the reason for borrowing the money. Interest on loan for business, rent, and royalty activities are deductible, however, interest on the loan for personal purposes is deductible as an itemized deduction.

The amount of deduction for interest paid on qualified residence acquisition debt and qualified home equity debt for the current period.