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
velikii [3]
4 years ago
14

In Year 1 Jorge buys a home for $200,000, making a down payment of $40,000 and taking out a loan from the bank for $160,000 to f

inance the balance. In Year 5 the remaining loan balance is $130,000 while the home has increased in value to $270,000. Jorge refinances with a loan company that agrees to lend 125% of the value of the home, or $337,500, using $130,000 to repay the bank loan and providing $207,500 in cash. Jorge immediately spends $10,000 of the cash on a lavish vacation to the Bahamas, and $20,000 to pay down credit cards.
How much of the $337,500 home equity loan balance is allowable for calculating the home mortgage interest deduction on Jorge’s Year 5 tax return?

a. $270,000
b. $240,000
c. $230,000
d. $220,000
Business
1 answer:
Butoxors [25]4 years ago
4 0

Answer:

Under current tax law, no option is correct. Before 2018, option C would have been right.

Explanation:

Currently under the Tax Cuts and Jobs Act (from Jan. 2018 until Dec. 2025) you can only deduct interests on mortgages used to purchase, build or improve your home. In this case, Jorge will only be able to deduct the interests paid on the $130,000 he owed for the first mortgage.

Interests on home equity loans will again be deductible (up to $100,000) starting Jan. 2026.

You might be interested in
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied.
nika2105 [10]

Answer:

$2.25 per unit

Explanation:

The computation of the cost per equivalent is shown below:

= Total conversion cost ÷ total units completed

where,

Total conversion cost is

= Beginning work in process conversion cost + cost of conversion added

= $20,250 + 271,125

= 291,375

And, the number of units is

= Units completed + work in process ending inventory units × completion percentage

= 115,700 units + 23,000 units × 60%

= 115,700 + 13,800

= 129,500 units

So, the cost per equivalent unit for conversion cost is

= $291,375 ÷ 129,500 units

= $2.25 per unit

4 0
3 years ago
A financial adviser manages an equity portfolio for an endowment fund, which has an 8.2% return objective. The adviser makes a s
MArishka [77]

Answer:

The endowment fund is not satisfied with the advisor's performance

Explanation:

Judging from a nominal interest rate perspective where return expected of an investment comprises of real rate of return and an extra return which is a compensation for inflation rate in the economy,the endowment fund is not satisfied with performance of the advisor.

The satisfactory rate of return that would be expected of the advisor is computed below:

nominal interest rate=real rate+inflation rate

real rate is 8.2%

inflation rate is 2.9%

nominal interest rate=8.2%+2.9%

                                  =11.10%

3 0
3 years ago
Interest begins accruing on a _____ the day of the transaction.
xenn [34]
Interest begins accruing on a __<span> cash advance </span>___ the day of the transaction
.As interest is the
<span>money that is  paid regularly at a particular rate for the use of money lent
</span>A __<span>posting date</span>___ is when a payment is credited to an account. 
its the date at which money is being transected from bank
so correct option is B
hope it helps
6 0
4 years ago
Read 2 more answers
Which of the following is an example of consumer problem behavior?
Dahasolnce [82]

Answer:

E. Johnathan eats alone because he feels guilty about his binge-eating habits and gets worked up when waiters attend to him.

Explanation:

Johnathan is not happy with his habit of binging food.This made him to act like seating alone while eating and he gets worked up when he is attended by waiters

7 0
3 years ago
The demand curve of a monopolistically competitive firm is _________________ than that of a perfectly competitive firm. g
Hitman42 [59]
Downward sloping ; more elastic.
7 0
3 years ago
Other questions:
  • Explain why each of the following statements is a rationale for conducting active or passive policy: Economic circumstances can
    10·1 answer
  • What are some benefits of effective peer collaboration? Check all that apply
    5·2 answers
  • Ads for brita led lightings use comparative advertising to emphasize the benefits of using leds over cfls. the ads emphasize tha
    15·1 answer
  • Which of the following statements is CORRECT, other things held constant? Select one: a. If companies have fewer good investment
    14·1 answer
  • One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per
    6·1 answer
  • In a​ make-to-order system, when a customer places a request for a product or service with a​ producer,
    11·1 answer
  • Beth is a college student looking for summer employment. She has two options. Firm X is employing lifeguards to patrol the beach
    13·1 answer
  • Consider the same scenario as in the previous question: On March 31, 2015, Cars, Inc. owes Preston Devices, one of its suppliers
    5·1 answer
  • Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $360,000 and credit sa
    8·1 answer
  • Item1 Return to questionItem 1 Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as f
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!