Steve and Marian Purchase a New Condominium in Manhattan on February

Multiple Choice

Steve and Marian purchase a new condominium in Manhattan on February 1,2019 to use as their primary residence.The purchase price of the condominium is $1.5 million.The couple obtained a $1.0 million mortgage from the bank and paid the balance in cash.On their joint tax return the couple will be allowed an itemized deduction for interest expense on a principal balance of up to

A) $1.5 million.
B) $1.0 million.
C) $750,000.
D) $500,000.