Margaret Lindley Paid $15,000 of Interest on Her $300,000 Acquisition

Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (fair market value of $500,000) , $4,000 of interest on her $30,000 home-equity loan, $1,000 of credit card interest, and $3,000 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,000 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year?

A) $23,000.
B) $22,000.
C) $19,000.
D) $18,000.
E) None of the abovE.The credit card interest is nondeductible personal interest.The remaining interest is deductible as qualified residence interest ($15,000 + $4,000) and investment interest ($3,000) .The $3,000 investment interest is not restricted by her net investment income ($10,000) .