A compilation performed by an auditor:
is less reliable than audited financial statements.
does not require a statement of cash flows.
is the same as a review.
can be on a cash basis.
Janet and Andrew paid the following amounts during 2011:
Interest on automobile loan $1,200
Interest on bank loan (proceeds were used to purchase municipal bonds) 2,000
Qualified home mortgage interest 9,000
Points on the acquisition of their home 1,000
Loan appraisal fee 500
What is the maximum amount they can use as interest expense in calculating itemized deductions for 2011?
$10,000
$12,000
$13,700
$12,500