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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.

You might be interested in
Loptech, a technology firm, wants to issue bonds for investment purposes. Loptech has one of the best credit ratings in the indu
liraira [26]

Answer:less than 5% or equal to 5%

Explanation:

Due to it's high credit rating the populace will have confidence in him and it will not need to increase it's rate to attract investors.

This is similar to a government issuing treasury bill which rate of return will be less than the banks or other similar institution

5 0
3 years ago
Match each the following steps in the litigation process with its best description or example.
Lilit [14]

Answer:

The options were incomplete! All of the options, their right order and description is explained below.

Complete Question:

Match each the following steps in the litigation process with its best description or example.

A. Alternate dispute resolution

B. Deposition

C. Judge decides

D. Defenses raised

E. Starts the litigation

1. Discovery

2. Bench trial

3. Complaint

4. Mediation

5. Answer

Matching:

3. Complaint -> E. Starts the litigation

5. Answer -> D. Defenses raised

1. Discovery -> B. Deposition

4. Mediation -> A. Alternate dispute resolution

2. Bench trial -> C. Judge decides

Short Explanation:

Suppose A is plaintiff and B is defendant.

A files a complaint saying that B has done something wrong to me, to which B Answers and denies the claim of A. Then both parties A and B start to discover evidence against each other. Mediation usually happens at this stage when both parties know their position. If mediation fails then bench trial starts where a civil judge decides the verdict.

Detailed Explanation:

The litigation (means a case or lawsuit) process starts when a complaint is filed by a plaintiff (person who brings a case against someone in court of law) stating the alleged wrongdoings done by the defendant. He claims to be given relief against the wrongs done by the defendant.

Then defendant responds with an Answer in which he clarifies or point out incorrect allegations or denies all the accusations one by one made against him. If defendant finds a strong case against himself then he goes for mediation otherwise he proceeds towards discovery.

Discovery is the legal term used for finding and gathering of all sort of evidence or information. Examples of discovery are interrogations, depositions, examination reports.

Mediation is the process of dispute resolution where both parties appear in front of a neutral mediator and try to resolve the issue without going to trial. Everyone tries to avoid going to trail because it is expensive and time consuming therefore, many lawsuits get resolved without going into the trial.

When mediation fails then the final solution is to go for a trail. A bench trial means a trial in which a judge decides the verdict (no jury).

Note: Mediation means settlement and it can happen at any stage when both parties agree to a certain solution,

5 0
4 years ago
A major argument of the podcast is that corporations have the power to change their employee's behaviors and even how they see t
Viktor [21]

The correct answer to this open question is the following.

This can relate to my own understanding of business ethics in that corporations do really have a certain influence on employee's behaviors, but up to the point of reference or comparison. Employees have their own belief systems inherited by parents, family, and primary groups of reference.

It could make sense to look at corporate's capacity for global change at this level if the leaders are truly committed to sharing positive values that not only impact the workplace but can be extended to all areas of life.

Indeed, the workplace is where most people spend most of the time during the week. So it would be good that corporate leaders could create the kind of corporate culture in which employees feel comfortable, listened to, and appreciated.

If this is the case, corporations really can have a certain influence on employee's behaviors. Unfortunately, in most corporations, employees can see their leaders setting the example. On the contrary, these leaders are the ones that first break the rules and behave in different or questionable ways.

6 0
3 years ago
If no fixed duration of the partnership is specified, the partnership is a partnership in perpetuity, which means that the partn
arsen [322]

The answer is b. false.

In the absence of a partnership agreement on fixed duration, the Partnership Act 1890 may apply.

<span>Under the Act, a partnership will be automatically dissolved  if: a partner dies</span>

<span>·         </span>a partner becomes bankrupt;

<span>·         </span>the court orders it to be dissolved;

<span>·         </span>it's illegal to carry on the business of the partnership;

<span>·         </span><span>the partnership was created meet a goal and this  specific objective or the project is complete; or</span>

<span>a partner gives notice to dissolve the partnership to the other partners. The </span>
7 0
3 years ago
Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has esti
nlexa [21]

Answer:

19 units per order

Explanation:

the formula to calculate economic order quantity (EOQ) is:

EOQ = √(2SD/H)

  • S = cost per order
  • D = annual demand
  • H = holding cost per unit

EOQ = √[(2 x 850 x 14) / 65] = 19.14 units

in this case to obtain the lowest possible cost you must round down your answer to 18 units per order.

The EOQ can help you determine the minimum amount of units that you should order of a product in order to reduce inventory costs.

6 0
3 years ago
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