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Usimov [2.4K]
3 years ago
9

Miller owns a personal residence witha fair market value of $308,000 and an outstanding first mortgage of $246,400. Miller gets

a secnd mortage on the residence and in return borrows $15,400 to purchase new jet skis. Interest on the $___________ of the first and second mortgage is treated as qualified residence indebtedness.
Business
1 answer:
marysya [2.9K]3 years ago
3 0

Answer: $246,400

Explanation:

Qualified residence indebtedness refers to the mortgage that's taken to purchase or improve on one's main home.

Based on the information given above, the on the $246,400 of the first and second mortgage is treated as qualified residence indebtedness.

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It should be noted that The risk that cannot be diversified away is firm-specific risk.

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