Problem: During 2004, Sophie paid the following interest charges:
Home mortgage $5,000
On loan to purchase a new car 2,500
On student loan 800
If Sophie itemizes her deductions for 2004, the amount deductible for interest expense as an itemized deduction is:
a. $2,500.
b. $5,000.
c. $7,500.
d. $8,300.
e. None of the above.