Business, 21.12.2019 01:31 raeanparker

In year 1, kris purchased a new home for $200,000 by making a down payment of $150,000 and financing the remaining $50,000 with a loan, secured by the residence, at 6 percent. as of january 1, year 4, the outstanding balance on the loan was $40,000. on january 1, year 4, when his home was worth $300,000, kris refinanced the home by taking out a $150,000 mortgage at 5 percent. with the loan proceeds, he paid off the $40,000 balance of the existing mortgage and used the remainder for purposes unrelated to the home. during year 4, he made interest only payments on the new loan of $7,500. what amount of the $7,500 interest expense on the new loan can kris deduct in year 4 on the new mortgage as home related interest expense?

a. $2,000
b. $5,000
c. $7,000
d. $7,500

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 17:20

Your aunt is thinking about opening a hardware store. she estimates that it would cost $300,000 per year to rent the location and buy the stock. in addition, she would have to quit her $45,000 per year job as an accountant. a. define opportunity cost. b. what is your aunt's opportunity cost of running a hardware store for a year? if your aunt thought she could sell $350,000 worth of merchandise in a year, should she open the store? explain.

Answers: 2

Answer

Business, 22.06.2019 16:50

Arestaurant that creates a new type of sandwich is using (blank) as a method of competition.

Answers: 1

Answer

Business, 22.06.2019 20:00

During the month of march 2017, weimar world, a tax-preparation service, had the following transactions. * billed $496,000 in revenues on credit * received $164,000 from customers' accounts receivable * incurred expenses of $194,000 but only paid $87,700 cash for these expenses * prepaid $32,220 for computer services to be used next month what was the company's accrual basis net income for the month? select one: a. $302,000 b. $264,080 c. $ 41,860 d. $408,300 e. none of the above

Answers: 3

Answer

Business, 23.06.2019 00:10

You are to receive five gold coins from your great uncle as an incentive to study hard. the coins were originally purchased in 1982. your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable"). the amount your great uncle paid for the coins is a(n): indirect cost.overhead cost.opportunity cost.sunk cost.

Answers: 1

Answer

You know the right answer?

In year 1, kris purchased a new home for $200,000 by making a down payment of $150,000 and financing...

Questions