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
Rainbow [258]
3 years ago
5

Your sister's pet supplies business obtained a 30-year amortized mortgage loan for $250,000 at a nominal annual rate of 7.0%, wi

th 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for for the first year of the loan
Business
1 answer:
Amiraneli [1.4K]3 years ago
4 0

Answer:

$17,419.55

Explanation:

To calculate the loan payment we use the formula:

a/ {[(1+r)^n]-1] / [r (1+r)^n]-1}

Where

a= $250,000

n= 360 (i.e 30years * 12months)

r = 0.00583/12 (7% / 12months)

=250000/{[(1+0.00583)^360]-1}/[0.00583(1+0.00583)^360]= $1663.26.

She'll pay $1663.26 in a month.

You'll need to construct an amortization table to get her annual payment.

After using the ammortization table properly her year1 payment will be $17419.55

You might be interested in
A central question that must be addressed in bankruptcy proceedings is whether the firm's inability to meet scheduled interest p
dexar [7]

Answer:

The statement is: True.

Explanation:

Bankruptcy<em> </em><em>is the legal state of a person or company which has become permanently insolvent or, in other words, incapable of repaying unpaid debts on time.</em>  Although there are several forms of bankruptcy filings, this procedure is intended to determine a structured and equitable settlement of debt obligations.

Bankruptcy proceedings may start with a petition filed by a borrower or when a petition is filed on behalf of a company's creditors.

6 0
3 years ago
Coronado Company purchased land for $80,000. The company also paid $12,000 in accrued taxes on the property, incurred $5,000 to
neonofarm [45]

Answer:

Amount recorded will be $95000

Explanation:

We have given that company purchased a land for $80000

Accrued taxes on the property = $12000

Incurred $5000 to remove an old building

And salvage value = $2000

We have to fond the amount for the land recorded in the accounting record

So the amount will be = $80000+$12000+$5000 -$2000 ( salvage value ) = $95000

So amount recorded will be $95000

6 0
3 years ago
If a borrower provides collateral and fails to repay the loan,
MakcuM [25]
The correct option is  B.
In case of non repayment of loan, the lender can sell the collateral and used the proceeds to cover his losses.  A collateral is always in form of properties which are substantial in value, it is often requested that borrowers provide collateral in order to reassure lenders that they will pay up.
6 0
3 years ago
Read 2 more answers
An employer instituted a wellness program for all employees. The wellness program includes an exercise facility and several pay
Airida [17]

Answer:

Option "B" is the correct answer to the following statement.

Enlightened Self-interest School.

Explanation:

Enlightened self-interest is an ethical principle which states that individuals who act to promote the interests of everyone else, or the interests of the group or groups to something that they belong, inherently act in their interests.

  • Employee wellness programs are plans, about health insurance, a form of medical benefit that many workers provide – in one sort or the other.
  • Defining a wellness program is a system to help employees remain healthy, or helps them improve their quality of life in some cases.
8 0
3 years ago
. There is an 80% probability that Tom will be in good health during the year and incur only $200 in medical expenses, but there
zaharov [31]

Answer:

The  Actuarially Fair Premium that Tom have to pay for hid Health Insurance is $4,160

Explanation:

To compute the amount that Tom have to pay for Health Insurance is;

Actuarially Fair Premium = (Probability of actuality ill × Payments incurred) + (Probability of not actuality ill × Payments incurred)

Actuarially Fair Premium = (20% x $20,000) + (80% x $200)

Actuarially Fair Premium = $4,000 + $160

Actuarially Fair Premium  = $4,160

5 0
3 years ago
Other questions:
  • "when products are presented to television viewers, who can purchase them by calling a toll-free number and paying with"
    5·1 answer
  • Sue, a vita/tce site coordinator, was watching the local news when she saw aaron, a new tax law-certified volunteer, in a story
    5·1 answer
  • An externality is an intangible effect of production and purchases.<br> TRUE<br> FALSE
    8·1 answer
  • Orange Corporation is developing standards for its products. Product A requires a material that is purchased for $80.00 per poun
    6·1 answer
  • You produce T-shirts, and it costs $3 to make each shirt. If you choose a price of $5 for each shirt, then you will _____.
    14·1 answer
  • In a transaction that qualifies under Section 351, Buster transfers an asset with a basis of $50,000 and a fair market value of
    12·2 answers
  • A view of a spectacular sunset along a private beach is an example of_______.
    8·1 answer
  • An investor opens an account with BNZ Government Securities, a broker-dealer limiting its transactions exclusively to securities
    13·1 answer
  • The eu is an example of a trading bloc, or a______________, which has a common external tariff, no internal tariffs and the coor
    11·2 answers
  • To convince his manager that a new copier was needed, Darrin kept track of the lost productivity that resulted from employees ha
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!