Sean Bought a Home in 2009 for $625,000 Financing $550,000

Sean bought a home in 2009 for $625,000 financing $550,000 of the purchase price with a 30 year mortgage.In 2013 when his existing mortgage balance was $520,000,he took out a home equity loan for $150,000.He used the proceeds to pay off credit card debt of $40,000 and purchase a car for $85,000;the balance he used to buy an engagement ring for his girlfriend.He paid $30,000 interest on the mortgage and paid interest only of $6,600 on the home equity loan.What is his deduction for qualified residential interest?

A) $36,600
B) $34,400
C) $30,000
D) $6,600
Questions 18 through 21 are based on the following data:
Colin (age 40) is single and itemizes his deductions.His AGI is $100,000.Colin provided the following information about his cash expenditures for 2013:
Interest on loan to purchase corporate securities $ 900
Interest on American Express card 1,200
Points to refinance his home at the end of December 2,600
Mortgage interest payments 11,800
Real estate taxes 2,100
State income taxes withheld on salary 5,400
Additional state income tax estimated payment 1,200
Contribution to Republican Party 2,000
Contribution to United Way 500