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Bumek [7]
3 years ago
13

Carlos opens a dry cleaning store during the year. He invests $30,000 of his own money and borrows $60,000 from a local bank. He

uses $40,000 of the loan to buy a building and the remaining $20,000 for equipment. During the first year, the store has a loss of $24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? $________
How much does Carlos have at risk at the end of the first year? $________
Business
1 answer:
saw5 [17]3 years ago
7 0

Answer:

How much of the loss can Carlos deduct if the loan from the bank is non-recourse?<u> No deduction because he is not personally liable for debt or loan used in the trade that holds real property.</u>

How much does Carlos have at risk at the end of the first year? <u>$30000</u>

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Answer:

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Explanation:

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Remaining coupon payments = 12

Bond maturity period = 3 years (12/4)

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The implication is that the bond's annual interest rate = 12% (3% * 4 quarters)

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Check this out: 3% of $1,333 = $40

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3 years ago
Eichholtz Company uses 10,000 units of a part in its production process. The costs to make a part are: direct materials, $12; di
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Answer:

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