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  3. c. interest i. zekes home is worth $250,000. he pu

c. Interest i. Zekes home is worth $250,000. He purchased the home 20 years for...

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Accounting

c. Interest

i. Zekes home is worth $250,000. He purchased the home 20 years for $100,000 with a mortgage the balance of which is currently $45,000. This year he paid $5,400 of interest on this mortgage. He also borrows $110,000 on a home equity loan and uses the proceeds to pay off personal debts, buy a new car, and take a vacation. Zeke pays $11,000 interest on the home equity loan. How much may he deduct?

ii. lucy borrows $10,000 to invest in the stock market. During 2020 she earns investment income of $800. Her interest expense associated with the $10,000 loan is $200. How much of the interest may she deduct? What if her interest expense is $900?

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