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zepelin [54]
3 years ago
9

On January 1, 2016, your sister's pet supplies business obtained a 30-year amortized mortgage loan for $225,000 at a nominal ann

ual rate of 7.0%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2016
Business
1 answer:
Colt1911 [192]3 years ago
5 0

Answer:

The interest tax deduction for 2016 will be $15,750.

Explanation:

This can be determined as follows:

Mortgage loan amount = $225,000

Annual nominal interest rate = 7.0%

Monthly nominal interest rate = Annual interest rate / Number of months in a year = 7.0% / 12 = 0.07 / 2 = 0.00583333333333333

Monthly interest amount = Mortgage loan amount * Monthly nominal interest rate = $225,000 * 0.00583333333333333 = $1,312.50

Number of months form January 1, 2016 to December 31, 2016 = 12

Interest tax deduction for 2016 = Monthly interest amount * Number of months form January 1, 2016 to December 31, 2016 = $1,312.50 * 12 = $15,750

Therefore, the interest tax deduction for 2016 will be $15,750.

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When a home builder decides to computerize all of its production schedule, it directly answer the what how or who question
pashok25 [27]

Answer:

The answer is How.

Explanation:

When a home builder decides to computerize all of its production schedule , it directly answers the HOW question.

Hope this helps!! ;)

4 0
4 years ago
Kacy Spade, owner, invested $10,750 cash in the company in exchange for common stock. The company purchased office supplies for
lisov135 [29]

Answer:

Accounts                                                                 Debit($)       Credit($)

Cash                                                                            10,750

Common Stock                                                                                10,750

<u>Being cash invested for common stock</u>

<u> in the business</u>

Office Supplies                                                           312

Cash                                                                                                  312

<u>Being office supplies purchased with cash</u>

Office Equipment                                                       5,945

Account Payable                                                                            5,945

<u>Being office equipment purchased on credit</u>

Cash                                                                             1,268

Fees Earned                                                                                     1,268

<u>Being cash received on service rendered </u>

<u>to a customer</u>

Account Payable                                                       5,945

Cash                                                                                                5,945

<u>Being settlement of amount owned for </u>

<u>office equipment</u>

Account receivable                                                   2,279

Fees Earned                                                                                    2,279

<u>Being recognition of amount owned </u>

<u>by customer</u>

Rent Expense                                                           525

Cash                                                                                                 525

<u>Being cash paid for rent</u>

Cash                                                                         957

Account Receivable                                                                       927

<u>Being cash collected for account receivable</u>

Dividend                                                                   900

Cash                                                                                             900

<u>Being dividend paid with cash</u>

Explanation:

Journal entry entries are used to record accounting effect of business transactions. General journal has two sides that make up debit and credit.

Entries on the debit side are assets or expenses while entries on the credit sides are liabilities, equity and income.

Journal also has a narration for each accounting event to provide information about the entry.

5 0
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Suppose every Buick owner's demand for gasoline is 20 - 5 p for p less than or equal to 4 and 0 for p &gt; 4. Every Dodge owner'
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Answer:

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required return = 15% = 0.15

growth rate = 5% = 0.05

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current price of stock

solution

we get here current price of stock that is express as

current price of stock = \frac{D}{r-g}   ....................1

here r is required return and g is growth rate and D is expected dividend

put here value in equation 1 we get

current price of stock = \frac{4}{0.15-0.05}

current price of stock = $40

7 0
4 years ago
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krok68 [10]

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