Answer:
The deductible interest expense is $22,000.
Explanation:
Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (fair market value of $500,000).
She paid $4,000 of interest on her $30,000 home-equity loan.
She also paid $1,000 of credit card interest and $3,000 of margin interest for the purchase of stock.
Margaret Lindley has $10,000 of interest income this year and no investment expenses.
The deductible interest expense
= $15,000 + $4,000 + $3,000
= $22,000
The interest on credit cards is not deductible as it is a personal interest.
