This Year, Carol, a Single Taxpayer, Purchased a Vacation Home

This year, Carol, a single taxpayer, purchased a vacation home for $400,000 using an equity debt of $350,000 on her principal residence. Carol has no other debt on her principal residence. Carol paid $16,000 of interest on the debt this year. How much of this interest is deductible assuming Carol itemizes her deductions?

A) $0
B) $10,000
C) $16,000
D) $125,000
E) None of the above