Jennifer purchased a home for $1,000,000 in 2016. She paid $200,000 cash and borrowed the...
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Accounting
Jennifer purchased a home for $1,000,000 in 2016. She paid $200,000 cash and borrowed the remaining $800,000. This is Jennifer's only residence. Assume that in year 2024, when the home had appreciated to $1,500,000 and the remaining mortgage was $600,000, interest rates declined, and Jennifer refinanced her home. She borrowed $1,000,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of acquisition indebtedness for the purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.) Group of answer choices
$600,000
$750,000
$1,000,000
$1,100,000
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