This year, major healy paid $34,750 of interest on a mortgage on his home (he borrowed $695,000 to buy the residence in 2015; $795,000 original purchase price and value at purchase), $5,250 of interest on a $105,000 home equity loan on his home (loan proceeds were used to buy antique cars), and $7,250 of interest on a mortgage on his vacation home (borrowed $145,000 to purchase the home in 2010; home purchased for $362,500). major healy’s agi is $220,000. how much interest expense can major healy deduct as an itemized deduction?

Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. his employer offers to let him convert a large portion of his salary into stock options. what is not a valid reason to turn down the stock offer? a)stocks with high returns have high volatility, and ronald's company may not grow further. b)ronald may be taxed more for capital gains than he would be for employment income. c)stock options are illiquid, and ronald may not be able to use them to pay for unexpected bills. d)ronald would be committing stock fraud if he exercises the options.