Answer:
James can deduct as expenses on his federal tax return $750.
Explanation:
When buying a houseboat, you’ll likely have to pay a monthly fee for the slip. Sometimes, the slip or the dock is included in the purchase, but often, you’ll have to pay rent. If buying a floating home, you’ll probably have a fee similar to a homeowners association fee. These monthly fees can range from a couple of hundred dollars to more than $700, Marden says.
You can have only one second home for purposes of the mortgage interest deductions. For example, if you have two houses, one of which is your primary residence and one that you use as a vacation home, you have to substitute your boat for your existing second home if you want to take a boat tax deduction. In addition, for tax years prior to 2018, joint filers are limited to deducting the interest on the first $1 million of mortgage debt. However, for tax years 2018 and forward, you may only deduct interest on the first $750,000 of mortgage debt originated after December 16, 2017. So, if you're already over the limit your boat loan won't help you even if it otherwise qualifies.
Answer:
$864,884
Explanation:
The proceeds received from the issuance of bonds equal the sum of the present value of the cash flows associated with the bonds (both the face amount and interest payments) discounted at the interest rate prevailing in the market at the time. The present value of the $800,000 face amount discounted at the market interest rate of 8% is equal to $540,448 ($800,000 × .67556). The present value of the semiannual interest payments of $40,000 [$800,000 × 10% × (6 months ÷ 12 months)] discounted at the market interest rate of 8% is equal to $324,436 ($40,000 × 8.11090). Thus, the proceeds on the sale of the bonds equal $864,884 ($540,448 + $324,436).
This is called a vertical merger. Vertical merger is a
merger where two companies merge and operate having the same goal of providing
a common product and services. This is also where the companies expand example
of this is the ebay and paypal which merge to have a common service.
Answer:
True
Explanation:
When a project has a positive net present value(NPV), it means that its NPV is greater than 0 hence you accept it . The Internal rate of return (IRR) of that project would also be greater than the cost of capital (hurdle rate). If the cashflows are conventional, the net present value rule and IRR rule are usually in agreement when making a decision on potential projects.