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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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Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial​ man
fredd [130]

Answer:

A. Bill chooses to pursue a risky investment for the​ company's funds because his compensation will substantially rise if it succeeds. 

Explanation:

An agency conflict problem usually arises when the agent (managers) do not act in the best interest of his principals (e.g. shareholders) usually because of selfish interests of the agent (manager).

I hope my answer helps you

3 0
3 years ago
One way that criminal law differs from civil law is that it: provides remedies for violations of private rights. must yield a un
lara [203]

Answer:

Criminal law "must must yield a unanimous verdict."

Explanation:

Civil law refers to a body of law protecting individual rights. It handles disagreement between people, or organizations.

Criminal law deals with crimes commited against the state or federal government by an individual who breaks a criminal law.

Most civil cases don't make it to trial and are settled outside the courts.

A criminal case on the other hand, requires a unanimous verdict from the jury and sentencing by the judge. Anyone who commits a crime is at the mercy of the court.

7 0
3 years ago
n a recent year's financial statements, home depot reported the following results. sales $ 95 billion net income 8 billion avera
faltersainse [42]

The  home depot's return on assets is 19.05%

The home depot's return on assets is 8.05% better than the 11% return of lowe's

What is return on assets?

The return on  on assets means the net income of Home Depot as percentage of the average total assets, in other words, the return on assets is the net income divided average total assets , not sales revenue, which is applicable to profit margin

return on assets=net income/average total assets

net income=8 billion

average total assets=42 billion

return on assets=8 billion/42 billion

return on assets=19.05%

difference in return on assets=19.05%-11

difference in return on assets=8.05%

The home depot's return on assets is 8.05% better than the 11% return of lowe's

Find out more about return on assets on:brainly.com/question/23554298

#SPJ1

3 0
2 years ago
You place an order for 1,600 units of Good X at a unit price of $53. The supplier offers terms of 2/30, net 50. a-1. How long do
andre [41]

Answer:

a-1. How long do you have to pay before the account is overdue?

  • 50 days

a-2. If you take the full period, how much should you remit?

  • if you pay after the discount period (first 30 days) but before the 50th day, you must pay $84,800

b-1. What is the discount being offered?

  • 2% if you pay within 30 days

b-2. How quickly must you pay to get the discount?

  • you have up to 30 days to pay the invoice and still get the discount

b-3. If you do take the discount, how much should you remit?

  • $83,104

c-1. If you don’t take the discount, how much interest are you paying implicitly?

  • $1,696

c-2. How many days’ credit are you receiving?

  • the total credit period is 50 days

7 0
3 years ago
Kay & Maggie's, a beauty salon, is conducting a survey to find out how satisfied its customers are with the service provided
SashulF [63]

Answer:

It is both qualitative data and primary data.

Explanation:

Qualitative data is data that is not expressed in numerical values. Kay & Maggie are asking for opinons in the survey and interviews. These opinons are not numbers, they are words, language, therefore, they are qualitative.

It is primary data because Kay & Maggie are collecting the information directly from the desired source, the customers, instead of collecting the data from a third party.

7 0
3 years ago
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