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IceJOKER [234]
2 years ago
7

Assume year 1 is 2019 and by the beginning of year 4, the Sanchezes have paid down the principal amount of the loan to $500,000.

In year 4, they borrow an additional $100,000 through a loan secured by the home in order to finish their basement. The new loan carries a 7 percent interest rate and is termed a "home equity loan" by the lender. What amount of interest can the Sanchezes deduct on the $100,000 loan?
Business
1 answer:
Margaret [11]2 years ago
8 0

Answer: $7,000

Explanation:

Interest deduction is allowed by the IRS if the loan was taken to improve the home. However, for married couples, only loans below the $750,000 limit can have their interest deducted.

The Sanchezes have paid off $500,000 of the principal of their previous loan so we will assume that was enough to get this new loan under the $750,000 limit.

Allowable interest deduction will therefore be:

= 100,000 * 7%

= $7,000

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Advertising department expenses of $26,700 and purchasing department expenses of $46,700 of Cozy Bookstore are allocated to oper
allochka39001 [22]

Answer:

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Explanation:

Note: See the attached excel for the completed table used in allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

From the attached excel, the advertising department expense allocated to each department are as follows:

Books Dept = $11,748

Magazines Dept = $8,010

Newspapers Dept = $6,942

Totals advertising department expenses allocated = $26,700

From the attached excel, the purchasing department expenses allocated to each department are as follows:

Books Dept = $20,081

Magazines Dept = $10,741

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Download xlsx
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2 years ago
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nikitadnepr [17]

Answer:

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Price of B(0,13) = 1 / 2.7196237

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Price of B(0,13) = 0.368

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D maybe hope this helps

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