Interest on up to $X ($Y MFS) of acquisition indebtedness (a loan/mortgage incurred to buy, build, improve a principal and second home) is deductible as qualified residence interest. What is X and Y?
A. 100,000; 50,000
B. 500,000; 250,000
C. 1,000,000; 500,000
D. 750,000; 375,000
Answer: C. 1,000,000; 500,000