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
Answer:
B. n/a (200) 200 200 n/a 200 n/a
Explanation:
A purchase discount is a contra-expense account which has a credit balance. Expenses have normal debit balances, so a credit balance will decrease the expenses incurred by the company.
E.g. you paid $100 within the discount period (2% discount)
Dr Accounts payable 100
Cr Cash 98
Cr Purchase discounts 2
This transaction doe snot affect assets, but it will decrease liabilities by $200 and increase R.E. by $200. Since this is a contra expense account, it will increase revenue and net income. It doesn't generate any additional cash flows.
Answer:
$7.90
Explanation:
Calculation for lower bound on the current value of the European put option
Using this formula
Lower bound current value for European put option = Ke^–rt –So
Where,
Rf represent risk free rate 4%
K represent (Strike price) = $30
(t) represent Time = 1 month = 1/12 year
(So) represent Stock price = $22
Let plug in the formula
Lower bound current value for European put option = [30e^–0.04 x (1/12) ] – 22
Lower bound current value for European put option = $29.90 – $22
Lower bound current value for European put option = $7.90
Therefore the lower bound on the current value of the European put option will be $7.90
Answer:
Explanation:
a) Investment/flow ratio =10000/annual cash flow=6.2
So, the annual cash flow is 10000/6.2=1613
b) Investment/flow ratio =investment/2000=6.14
So, the investment is 2000*6.14=12280
Answer: The preparation phase
Explanation:
The preparation phase of data analysis is a phase where the Data analyst examines the information he got in order to carry out his or her job properly. One if the test he carries out that period is Duplicate testing, it is used to identify transactions with duplicate values in specified fields. It can quickly review files
