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Ymorist [56]
3 years ago
6

is year, Amy purchased a personal residence at a cost of $1,000,000. She borrowed $800,000 secured by the home to make the purch

ase. This year, she paid interest expense on this mortgage of $12,000. How much may she deduct?
Business
1 answer:
Irina18 [472]3 years ago
3 0

Answer:

 Deductible Interest is $11,250

Explanation:

Compute at the amount of $750,000 the interest Amy could deduct as follows:

Since the interest on loan secured by home could be deduct on the first $750,000 borrowing amount. Hence,

 Deductible Interest = Interest Paid × ($750,000 / Loan Secured by income)

 Deductible Interest = $12,000 × ($750,000 / $800,000)

 Deductible Interest = $11,250

Hence, the Amy could deduct interest on borrowing $11,250

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A manager needs to inform employees that the quarterly project management training will start on May 1, about two months from no
In-s [12.5K]

Answer: In this particular case where the manager needs to inform about the employees quarterly project management, it would be better to inform them<u><em> face-to-face</em></u>. Since , it'll help the manager to provide a better insight to the project management training.

<u><em>Therefore, the correct option in this case is (a)</em></u>

6 0
3 years ago
Read 2 more answers
A company is considering an iron ore extraction project that requires an initial investment of and will yield annual cash inflow
Murrr4er [49]

Answer: D. 15%

Explanation:

The IRR is the discount rate that will make the Net Present Value to be 0.

In other words, the IRR is the discount rate that will make the cash inflow from the investment to be equal to the investment amount.

As the cashflow is constant, it is an annuity and so can be calculated by the Present Value Interest Factor.

Investment cost = $1,100,000

Using the options given;

Discount rate - 14%

Present Value of Cash inflow = 676,507 * Present Value of Annuity factor, 14%, 2 years

= 676,507 * 1.647

= $1,114,207.029‬

1,114,207.029‬ ≠ 1,100,000

Discount rate - 15%

Present Value of Cash inflow = 676,507 * Present Value of Annuity factor, 15%, 2 years

= 676,507 * 1.626

= $1,100,000.382‬

= $1,100,000‬

IRR is 15% as Present value of Cash inflow is equal to Investment cost at a discount rate of 15%.

8 0
3 years ago
Emily spent $259,600 to rehabilitate a certified historic building (adjusted basis of $168,740) that originally had been placed
tatiyna

Answer: $51,920

Explanation:

For a building that was constructed before 1936, the rehabilitation credit is 20% of the amount that the taxpayer spent to rehabilitate the historic building. As this building was constructed in 1935, Emily qualifies for that 20% credit:

= 20% * 259,600

= $51,920

5 0
3 years ago
The Junior League of Yadkinville, California, collected recipes from members and pub- lished a cookbook entitled Food for Everyo
MaRussiya [10]

Answer:The variable cost per book is $16

Explanation:

Sale price per book = $18

Books need to sell = 2,000

Total Revenue. = $36,000

($18*2,000)

At Break Even Total Revenue = Cost + investment so total variable cost is ($36,000 - $4,000) = $32,000 and cost per book is $32,000÷2,000 = $16 per book

4 0
3 years ago
When the price level decreases, firms in perfectly competitive markets will:
Softa [21]

Answer:

The correct answer is option b.

Explanation:

The law of supply states that other things being constant, the price of the product and its supply are positively related. This means that an increase in price will cause the quantity supplied to increase and vice versa.  

In a perfectly competitive market, the firms are price takers. So a decrease in the price of the product will cause its quantity supplied to decline. Or in other words, when the price falls, the firms will reduce output.

6 0
3 years ago
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