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Zina [86]
3 years ago
8

This year Randy paid $29,050 of interest on his residence. (Randy borrowed $464,000 to buy his residence, and it is currently wo

rth $514,000.) Randy also paid $2,850 of interest on his car loan and $4,725 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances
Business
1 answer:
Luden [163]3 years ago
5 0

Answer:

the last part of the question is missing, so I looked for it:

a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.

b. Randy had no investment income this year, and his AGI is $75,000.

a) Randy can deduct $31,575:

  • the mortgage interest is deductible
  • the car loan interest is not deductible
  • he can deduct $4,725 - $2,200 = $2,525 as investment interest expense

b) Randy can deduct $29,050

  • the mortgage interest is deductible
  • the car loan interest is not deductible
  • since he had no investment revenue, he cannot deduct any investment interest expense

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A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The mach
Naddik [55]

Answer:

Cash flow year 0   (110,000)

or in other way to express it: a cashoutflow for $110,000

Explanation:

Initial net cahs outflow

this will be the acquisition of the machine cost plus the increase in the working capital for the company

machine cost: all cost necessary for acquire the machien and get it operational

supplier list price        85,000

installation cost       <u>    15,000</u>

total cost                     100,000

Increase in Working Capital Cost 10,000

As these are cost they are negative so we have a cashouflow

Total cashflow    (110,000)

4 0
3 years ago
A ________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products.
sertanlavr [38]

Answer: Import  Quota

Explanation:

A quota is  defined as a  government-imposed limit that is placed on  trade whether import or export so as to control goods and services that  enter or leave the country. we have different typos of quota  but we will talk about the

Import Quotas --- To reduce competition faced by local products, government places import quotas on import goods so as to prevent the flood of foreign goods in the market which most times are cheaper than local goods as they are mostly produced with cheaper labor than the domestic products .

7 0
3 years ago
"a branding strategy in which a firm uses a different brand for each of its products is called ____ branding."
Aleksandr-060686 [28]
<span>A branding strategy in which a firm uses a different brand for each of its products is called individual branding. With the use of this strategy, products from the same company are given a unique identity and name. This is especially useful when companies offer a wide range of products that cater different price markets. </span>
8 0
3 years ago
Which company sold for the highest cash equivalent value?
Anika [276]

Answer:

Company B (transaction d)

Explanation:

present value of transaction a (company D) = $1,100,000 / 1.08 = $1,018,519

present value of transaction b (company C) = $45,000 x 21.21211 (PV annuity factor, 2.4%, 30 periods) = $954,545

present value of transaction c (company A) = $1,000,000

present value of transaction d (company B)  = $100,000 x 10.52141 (PV annuity factor, 4.8%, 150 periods) = $1,052,141

6 0
3 years ago
Saltdust Grill is known as the premier restaurant in town. With its elegant dining area, extensive wine list, and gourmet chef,
Oliga [24]

Answer:

D) delivery

Explanation:

A delivery gap in service quality refers to the difference between the actual delivery of a good or service versus the service delivery policies. In other words, it is the difference between reality and theory.

Theoretically Saltdust should be a premier restaurant and serve delicious dishes, but in reality its service is not that good.

8 0
3 years ago
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