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olga55 [171]
4 years ago
13

Nancy refinances her home mortgage on June 1 of the current year. She obtains a 30-year mortgage at 5%. As part of the refinanci

ng, she pays points of $3,600 (a customary practice in her location). What amount, if any, of the points are deductible ____________?
Business
1 answer:
mylen [45]4 years ago
4 0

Answer:

Nancy  will be able to deduct $70 points.

Explanation:

the deduction is allowed in the year of payment if the following requirements are met:

- your main home is the security for your loan

- cash method of accounting is used

- points are not paid out of borrowed funds.

if Nancy  does not fulfill the requirements, then the points will be allowed to be deducted over the life of the loan..

Therefore, $3600 will be spread over 30 years, Nancy  will be able to deduct $70 points.

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A company’s investment bankers say that a proposed new issue of 7.5 percent cumulative preferred stock with a par value of $10 a
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Answer:

The Answer is as follows;

Explanation:

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Total financing Cost=$1.75

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8 0
4 years ago
The Car Service Center has the design capacity to perform an average of 60 repairs per day. The effective capacity of this repai
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Answer:

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Explanation:

Based on the information given the capacity  utilization percentage will be :

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