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Compute the amount deductible as interest expense

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Question - During the current year, Horace paid the following interest charges:

Home mortgage $3,600

On loan to purchase household furniture 400

On loan to purchase state of Nebraska general purpose bonds (wholly tax-exempt) 600

If Horace itemizes his deductions from AGI for the current year, the amount deductible as interest expense is:

a. $4,600

b. $4,000

c. $3,600

d. $4,200

e. None of the above.

Reference no: EM132493834

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