1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ne4ueva [31]
4 years ago
6

During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200

,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively?
Business
1 answer:
77julia77 [94]4 years ago
8 0

Answer:

qualified acquisition debt = $750,000

qualified home equity debt = $0

Explanation:

Qualified acquisition debt refers to the debt incurred to purchase or build your home. In this case, Cary and Bill are allowed to itemize the interests paid for up to $750,000 of the acquisition debt ($375,000 if filing separately). This limit was reduced due to the TCJA of 2017, and will remain in place until 2025. After 2025, the limit will return to the normal $1,000,000.

Certain amount of interests on qualified home equity loans will also return in 2025, but currently they are not deductible.  

You might be interested in
After earning $30 million in net income, Rolatrim Industries distributed $5 million in dividends to their stockholders. The boar
ValentinkaMS [17]

Answer:

retained earnings        

Explanation:

In simple words, Retained earnings refers to the amount from net profits left available to the company after the owners have taken out dividends. The determination to maintain the profits or disperse them to the owners is typically left mostly to administration of the company.              

Although this is done by the declaration of income, the net benefit is still included both in the income statement as well as the cash flow statements. This are not paid to shareholders as dividends but are rather used for new funding back into the company..

8 0
4 years ago
Which would be added in the Investing Activities section of the Statement of Cash Flows? Select one: a. Proceeds from Condemnati
Charra [1.4K]

Answer:

  • a. Proceeds from Condemnation of Land
  • c. Cash paid for unexpected major equipment repairs

Explanation:

The Cash Flow statement records only activities that affect the cashflow of the company. The Investing Activity section of the Cashflow statement deals with capital goods (PPE) and investments in other company securities.

The proceeds from land condemnation will go to the Investing activities section as it has to do with capital goods and the cash paid for unexpected major equipment repairs will see the equipment being used in the long term so it goes to Investing as well.

7 0
3 years ago
Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received fro
Alex Ar [27]

Answer:

The correct option is B,-$5,200 as found in the attached.

Explanation:

The net cash flows provided/used by investing activities are cash flows(both inflows and outflows) on assets that are capable of generating earnings directly or indirectly for the business.

By direct ,I mean assets that are used directly in the business to enhance the business earnings while indirect relates those that are not used in core business operations.

Cash flow from investing activities is computed:

Cash received from sale of equipment    $14,800

cash paid to purchase investment            ($20,000)

Cash flow used in investing activities       ($5,200)

The correct option is B as found in the attached .

Download xlsx
5 0
3 years ago
What does the term “base material” refer to with respect to masonry fasteners?
lilavasa [31]
<span>The term “base material” with respect to masonry fasteners</span> refers to concrete, brick or block.
Concrete anchors are used to solve concrete fastening problems.
5 0
3 years ago
Read 2 more answers
A shift which is designed to cause team b to encroach is a false start.
nikklg [1K]

ANSWER: After a ball is marked ready and before the play begins, any attempt made by A player will result to penalty and will be declared a false start. There is a a strict rule that no false start shall be made in the game. There is also a rule that no one except the snapper shall encroach on the neutral zone to give defensive signals.

7 0
3 years ago
Read 2 more answers
Other questions:
  • In terms of foodservice layout design, a ‘work station’ is a small area at the back of the dock
    11·1 answer
  • Sinto Investments is in the process of developing a 300-mile toll road that will run through federal land. Sinto will likely nee
    5·1 answer
  • 1) What is international currency arbitrage all about? Consider the following data: UK 90-day interest rate = .07 Europe 90 day
    12·1 answer
  • You have determined the following data for a given bond: Real risk-free rate (r*) = 3%; inflation premium = 8%; default risk pre
    8·1 answer
  • Information that has been measured and reported in a similar manner for different enterprises is _________.
    9·1 answer
  • A facility management pro forma cash flow statement has beginning accounts receivable and payable balances of ¥18,000,000 (Japan
    12·1 answer
  • Lighter Than Air Industries expects that it would lose $10 million if a tornado struck its aircraft operations facility. It expe
    11·1 answer
  • Overton Corporation, a manufacturer of household paints, is preparing annual financial statements at December 31, 2019. Because
    9·1 answer
  • How can the Early Modern English expression "unfold yourself" be paraphrased to better understand its meaning? put your arms up
    15·2 answers
  • Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7. 96% sales tax, a $2,138 veh
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!