1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Digiron [165]
3 years ago
15

The Wilmoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. Given their projected

taxable income, the Wilmoths are in the 24% Federal income tax bracket and the 8% state income tax bracket (i.e., an aggregate marginal tax bracket of 32%). Assume that the Wilmoths will benefit from itemizing their deductions for both Federal and state purposes. The total cash outlay during the first year of ownership will be $33,200 ($3,320 principal payments, $29,880 qualified residence interest payments).
As a result, the annual after-tax cost of financing the purchase of the home will be $_____________?
Business
1 answer:
iVinArrow [24]3 years ago
6 0

Answer:

the annual after-tax cost of financing the purchase of the home is $23,638.40

Explanation:

The computation of the annual after-tax cost of financing the purchase of the home is shown below:

= Installment amount - tax saving

= $33,200 - ($29,880 × 32%)

= $33,200 - $9,561.60

= $23,638.4

hence, the annual after-tax cost of financing the purchase of the home is $23,638.40

We simply applied the above formula

You might be interested in
Paul consumes only books and DVDs. At his current consumption​ bundle, his marginal utility from DVDs is 23 and from books is 5.
Paul [167]

Answer:

Paul is not maximizing his utility because MUd/Pd is greater than MUb/Pb

Explanation:

Marginal utility is the extra satisfaction derived from spending an additional unit of money on consuming a particular product or service.

In order to determine if he is maximizing his utility, we must calculate his utility per dollar, and this is done by dividing his Marginal Utility by the price.

Marginal Utility per dollar of DVDs is:

MUd/Pd = 23/11 = 2.09

Marginal Utility per dollar of books is:

MUb/Pb = 5/3 = 1.67

Utility is maximized when MUd/Pd is equal to MUb/Pb and Paul has exhausted his budget.

4 0
3 years ago
Home Works Referral Network is a premier home service referral network of dependable, highly skilled home improvement profession
Hatshy [7]

Answer:

The correct answer is D. code of ethics.

Explanation:

A code of ethics serves to regulate the actions of a professional, to protect organizations and their members; In this way, the behavior standards of people within a company or organization are established. In this case, the domicile company requires a code of ethics so that the personnel do not disclose company information, honestly carry out the work, take responsibility for the obligations assigned to them during their professional activity.

4 0
3 years ago
What is application software?
eduard
I believe it's (D) because, An application is any program, or group of programs, that is designed for the end user. Application software can be divided into two general classes: systems software and applications software. Applications software (also called end-user programs) include such things as database programs, word processors, Web browsers and spreadsheets.
5 0
3 years ago
Help please
Monica [59]
It reduced the cash flow to product innovation. It led to increased operating costs.
3 0
3 years ago
Jaffe found that stock prices __________ after insiders intensively bought shares and __________ after insiders intensively sold
kiruha [24]

Answer:

c

Explanation:

6 0
3 years ago
Other questions:
  • When a company uses data from questionnaires and surveys to determine customer preferences, it is utilizing the _____ marketing
    5·2 answers
  • Essay of circular flow
    8·1 answer
  • Clarence lives in Maine, which has a sales tax of 5%. He just bought a digital camera whose full price was $725, but after sendi
    7·1 answer
  • Lew Co. sold 200,000 corrugated boxes for $2 each. Lew's cost was $1 per unit. The sales agreement gave the customer the right t
    5·1 answer
  • 1. Why do you think savings, scholarships, and state aid are good “preparation"
    5·1 answer
  • A municipal bond dealer buys 100M of 30 year non-callable 9% General Obligation bonds at par less 1 point. After holding the bon
    14·1 answer
  • Jean-Baptiste Say thought that entrepreneurs should be considered a fourth factor of production. Do you agree or not? Explain yo
    8·1 answer
  • From what part of income should someone take savings?<br>​
    11·2 answers
  • Olamide is a manager at a catering company, organizing an upcoming wedding. she will need to allocate a portion of her staff to
    9·1 answer
  • charles was a relatively new and inexperienced leader assigned to an experienced workgroup with long-standing performance norms
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!