Exercise 12.7 Cash dividends, stock dividends, and share splits L.O. 4
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Budgeting is the earning of the estimated income and its expenditure on various bills and daily utilities. For maintaining a balance of income, budgeting is done so that expenses do not exceed the income.
$2,850 is a good yearly estimate of repairs and maintenance for the Davis family’s home.
<h3>How to estimate repair and maintenance?</h3>Given,
- Down Payment = $20,000
- Mortgage = $265,000
- Purchase price of the house = $285,000
1% of the purchase price is budgeted for repair and maintenance (X) and will be estimated as:
Therefore, <em>option c</em>. $2850 is the repair and maintenance cost.
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