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kati45 [8]
2 years ago
12

Your client, beth, has a home in california with a first and second mortgage. she's looking for a vacation home and has asked if

she can deduct mortgage interest. what could you tell beth?
Business
1 answer:
slega [8]2 years ago
4 0

If my client Beth has a home in California with a first and second mortgage and is looking for a vacation home and asks if she can deduct mortgage interest, I would suggest obtaining a mortgage secured by the second home and deducting the interest from the loan.

Mortgage interest settled on a second home used personally is deductible as long as the mortgage fulfills the exact prerequisites for deductible interest as on your primary home, and if the second home is put on for rent, the loan taken for the second home will not have a limit for the deduction of interest payment.

Vacation Home with Second house mortgage

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Which of the following statements about business processes is not true?Question 3 options:A) Business processes are a collection
natali 33 [55]

Answer:

E.

Explanation:

The information system is very important in business processes because help managers in efficient decision making to achieve the organizational goals.

An organization will be able to survive and thrive in a highly competitive enviroment on the strength of a well desing information system.

Helps in making right decisions at the right time, or just in time. A good information system may be utilized by managers in unusual situations.

It is viewed as a process, it can be integrated to formulate a strategy of action or operation.

8 0
3 years ago
Which of the following statements is CORRECT? a. Because most stock ownership is concentrated in the hands of a relatively small
lbvjy [14]

Answer:

d. The potential exists for agency conflicts between stockholders and managers.

Explanation:

  • A problem of the agency is a conflict of the interest of relationships where one party is expected to act in another best interest and usually refers to the conflicts of the interest between the companies management and the stockholders.
6 0
3 years ago
When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti
olga55 [171]

Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A

Explanation:

The following can be deduced form the question:

P1 = $50

P2 = $70

Q1 = 500 units

Q2 = 400 units

Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100

Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100

% change in quantity = (400 - 500)/(400 + 500)/2 × 100

= -100/450 × 100

= -22.22%

% change on price = (70 - 50)/(70 + 50)/2 × 100

= 20/60 × 100

= 33

Price elasticity of demand = % change in quantity / % change on price

= -22.22 / 33

= -0.67

This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.

Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A

7 0
3 years ago
Your godmother put $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. What is the rate of return on the
damaskus [11]

Your godmother put $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. 9.60% is the rate of return on the trust fund.

FV =  Future Value

PV =  Present Value

r =  rate of interest

n=  no of period

   

FV/ PV =  (1 + r )^n

5000/2000   =  (1 + r%)^10

2.5 = (1 + r%)^10

r = 9.60%.

The rate of return is the net profit or loss of an investment over a period of time, expressed as a percentage of the original cost of the investment. 1 When calculating the rate of return, find the percentage change from the beginning of the period to the end of the period.

Learn more about the rate of return at

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7 0
2 years ago
Don Howard is a trader who likes to make money based on changes in the foreigncurrency exchange market. Currently the spot rate
IrinaVladis [17]

Answer:

Don profit in the forward market can be USD 48,152.37

Explanation:

Spot rate currently is at 24.0239 MXN/USD

Sell USD forward at 26.5693 MXN/USD

Profit on settlement after 3 months = (Selling price - buying price)*Number of units

Profit on settlement after 3 months = (26.5693 - 25.3487)*1,000,000

Profit on settlement after 3 months = MXN 1,220,600

The exchange rate is expected to move to 25.3487 by Clint

Hence, 1,220,600/25.3487 = USD 48,152.37

Don profit in the forward market can be USD 48,152.37 if hewants to trade USD 1,000,000

3 0
3 years ago
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