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Patricia purchased a home on January 1, year 1 for $1,250,000 by making a down...

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Accounting

Patricia purchased a home on January 1, year 1 for $1,250,000 by making a down payment of $100,000 and financing the remaining $1,150,000 with a 30-year loan, secured by the residence, at 6 percent. During year 1, Patricia made interest-only payments on the loan of $69,000. What amount of the $69,000 interest expense Patricia paid during year 1 may she deduct as an itemized deduction?

a - $63,000

b - $0

c - $3,000

d - $66,000

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