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
Anna71 [15]
3 years ago
9

Jessica purchased a home on January 1, 2018 for $580,000 by making a down payment of $230,000 and financing the remaining $350,0

00 with a 30-year loan, secured by the residence, at 6 percent. During 2018 and 2019, Jessica made interest-only payments on this loan of $21,000 (each year). On July 1, 2018, when her home was worth $580,000 Jessica borrowed an additional $145,000 secured by the home at an interest rate of 8 percent. During 2018, she made interest-only payments on the second loan in the amount of $5,800. During 2019, she made interest only on the second loan in the amount of $11,600. What is the maximum amount of the $32,600 interest expense Jessica paid during 2019 may she deduct as an itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard
Business
1 answer:
Ann [662]3 years ago
5 0

Answer:

$32,600

Explanation:

Calculation to determine her itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard

Using this formula

Itemized deduction =(Financing amount * 6 percent)+(Additional amount borrowed*interest rate of 8 percent)

Let plug in the formula

Itemized deduction=( $350,000 * 6 percent)+($145,000 *8 percent)

Itemized deduction=($21,000+$11,600)

Itemized deduction=$32,600

Therefore her itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard wi be $32,600

You might be interested in
A company purchased $270,000 in supplies during the year. The supplies account increased by $10,000 during the year to an ending
LuckyWell [14K]

Answer:

$260,000

Explanation:

Opening balance = Ending balance - Increase in ending balance

=$66,000 - $10,000

=$56,000

Supplies Expenses = Opening balance + Purchases - Closing balance

=$56,000 + $270,000 - $66,000

=$336,000 - $66,000

=$260,000

Therefore, the amount that will be the adjusting entry to supplies expenses is $260,000

7 0
3 years ago
Software development process that develops software iteratively with a heavy emphasis on construction activities is known as
Veseljchak [2.6K]
Software development process that develops software iteratively with a heavy emphasis on construction activities is known as an agile process. This process is  driven by and focused on customer descriptions. It recognizes that plans are only for a short time and delivers a number of software increments. 
7 0
3 years ago
Find the effective interest rate per payment period for an interest rate of 9% compounded monthly for each of the given payment
Temka [501]

Answer:

a. 0.75% per month

b. 2.25% per quarter

c. 4.5% semi- annually

d. 9% yearly

Explanation:

a. Computing the effective interest rate per payment period for the payment schedule which is monthly:

Effective rate (monthly) = Nominal rate (r) / Compounded monthly (m)

where

r is 9%

m is 12

Putting the values above:

= 9% / 12

= 0.75% per month

b. Computing the effective interest rate per payment period for the payment schedule which is quarterly:

Effective rate (quarterly) = Nominal rate (r) / Compounded quarterly (m)

where

r is 9%

m is 4

Putting the values above:

= 9% / 4

= 2.25% per quarter

c. Computing the effective interest rate per payment period for the payment schedule which is semi- annually:

Effective rate (semi- annually) = Nominal rate (r) / Compounded quarterly (m)

where

r is 9%

m is 2 (every 6 months)

Putting the values above:

= 9% / 2

= 4.5% semi- annually

d. Computing the effective interest rate per payment period for the payment schedule which is annually:

Effective rate (annually) = Nominal rate (r) / Compounded yearly (m)

where

r is 9%

m is 1 (end of the year)

Putting the values above:

= 9% / 1

= 9% yearly

3 0
3 years ago
Ghana is the largest exporter of cocoa, while Netherland is the largest importer of cocoa. How have the two participating countr
VladimirAG [237]
I believe the correct answer from the choices listed above is the second option. The two <span>participating countries were benefited by global trade in terms of </span><span>economic growth in both the countries. Hope this answers the question. Have a nice day.</span>
3 0
3 years ago
Read 2 more answers
The reason that a person buys health or life insurance is to
Over [174]
D to limit the amount of financial loss if there is an illness or injury
6 0
3 years ago
Other questions:
  • Cycle counting A. involves shutting down production once per year to perform the annual inventory count. B. is a process by whic
    5·1 answer
  • Which of the following is a correct statement regarding the nature and timing of communications between an accounting firm perfo
    14·1 answer
  • You are offered an investment that will make three $5,000 payments. The first payment will occur four years from today. The seco
    13·1 answer
  • Focus strategies are: a. sheltered from the risks associated with industry-wide strategies because of their niche focus. b. able
    6·2 answers
  • What are three reasons why the United Nations forces on quality of life for all individuals
    11·1 answer
  • 1. Suppose that Intel is considering building a new chip-making factory. Assuming that Intel needs to borrow money in the bond m
    7·1 answer
  • The following transactions occur for Cardinal Music Academy during the month of October: a. Provide music lessons to students fo
    15·1 answer
  • Corporation is considering a capital budgeting project that would require an initial investment of $350,000. The investment woul
    14·1 answer
  • Before introducing the results of your survey, you explain in detail how you collected the data and the possible limitations of
    12·1 answer
  • Today, _______ recognize LLCs and provide both procedural (formation) and internal default rules (in the event the parties are u
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!