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Luba_88 [7]
3 years ago
15

During 2018, Cary and Bill incurred acquisition debt on their residence of $1,300,000. They also borrowed $200,000 on a home equ

ity line to pay college tuitions for their children. On a joint tax return, what is the amount of their qualified acquisition debt?
a. None of the above
b. $1,500,000
c. $750,000
d. $1,000,000
e. $1,300,000
Business
1 answer:
lilavasa [31]3 years ago
5 0

Answer:

The correct answer to the following question is option C) $750,000 .

Explanation:

In 2018, Carry and Bill took a qualified residence loan , where they incurred acquisition debt equal to $13,00,000 for their residence and took $200,000 on a home equity for paying their children's college tuition. As per the IRS, if a qualified residence loan is taken , then it should be secured against the home and loan should used to purchase or make improvement on the house.

The amount that is allowed as deductible for qualified residence loan for joint tax payers is $750,000, earlier this amount was $1 million.

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Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower
malfutka [58]

Answer:

C) international strategy

Explanation:

An international strategy is used by very specific industries which can be considered as luxury or almost luxury products, e.g. scotch whisky, french wine, etc.

International companies are mainly exporting companies, with most of the cost related activities occurring in the headquarters. Therefore this type of companies don't need to adapt locally and are not that worried about lowering costs. The main role of the subsidiaries is to channel the sales from the headquarters to the final customers.

5 0
3 years ago
Tammy, a resident of Virginia, is considering whether to purchase a $100, 000 North Carolina bond that yields 4.6% before tax. S
Degger [83]

Answer:

A. Virginia Bond: $4,500

North Carolina Bond: $4,451

B. Virginia Bond

Explanation:

A. Calculation to Determine the after tax income for Virginia Bond

Using this formula

After tax income for Virginia Bond=Face value*Virginia bonds of comparable risk

Let plug in the formula

After tax income for Virginia Bond=$100,000*4.5%

After tax income for Virginia Bond=$4,500

Calculation to Determine the after tax income for North Carolina Bond

Interest income before tax $4,600

(100,000*4.60)

Less State marginal tax ($230)

(5%*$4,600)

Interest income net of state tax $4,370

($4,600-$230)

Add Federal marginal tax $81

(35%*230)

After tax income for Noth Caroline Bond $4,451

Therefore the the after tax income from each bond will be:

Virginia Bond: $4,500

North Carolina Bond: $4,451

B. Based on the above calculation the options that will provide the greater after-tax return to Tammy will be VIRGINIA BOND reason be that it has high After tax income of the amount of $4,500 compare to Noth Caroline Bond which has After tax income of the amount of $4,451.

8 0
2 years ago
On January 4, 2019, Kiley Co. leased a building to Dodd Corp. for a ten-year term at an annual rental of $200,000. At the beginn
finlep [7]

Answer:

b. $200,000 $400,000

Explanation:

As it given that $800,000 received by Kiley,  out of which $400,000 is the security deposit amount  and remaining $400,000 represents the current year and the next year rent  

So we assume $200,000 is the current year rent revenue and the other $200,000 represents the unearned rent revenue which is reflected as a current liability

And, the security amount is shown as a long term liability

4 0
3 years ago
Pat picked a card from a standard deck, looked at it, and then put it back. he then picked a second card. what is the probabilit
mezya [45]
16/52 maybe :) There are 52 card in the deck then the diamonds and jokers would make 16. Maybe I'm not really sure but maybe. Hope this helps!!
5 0
2 years ago
What are the costs and consequences of providing and to whom
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Providing "and to whom" can be risky because it does not specify an exact name, and anybody who is in that position at a later time, can be affected by whatever is being referred.
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