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MariettaO [177]
2 years ago
5

Miller owns a personal residence with a fair market value of $380,900 and an outstanding first mortgage of $304,720, which was u

sed entirely to acquire the residence. This year, Miller gets a home equity loan of $19,045 to purchase a new fishing boat. How much of this mortgage debt is treated as qualified residence indebtedness
Business
1 answer:
Romashka [77]2 years ago
6 0

Answer:

$304,720

Explanation:

According to the IRS, qualified principal residence indebtedness may include:

1)  Debt incurred in order to purchase, build or improve your house or main residence, and the debt is secured by the house or principal residence (mortgage).

Or

2) Any house debt in (1) that is refinanced in order to improve, build or purchase something of your house or principal residence, e.g. you refinance your mortgage in order to build a swimming pool. The loan balance cannot exceed the original mortgage.

A fishing boat is not considered a home improvement, so the equity loan is not considered qualified residence indebtedness.

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In the spring of 2015, the Brille Corporation was involved in issuing new common stock at a market price of $35. Dividends last
Alecsey [184]

Answer:

Ke 0.09787234 = 9.787234%

Explanation:

$Cost of Equity =\frac{D_1}{P(1-f)} +g

D1 $1.575  (we need to calculate this year dividends so we multiply previous                  year by the growth rate) 1.50 * ( 1+ 0.05) = 1.575

P $35

f 0.06

g 0.05

$Cost of Equity =\frac{1.575}{35(1-0.06)} +0.05

Ke 0.09787234

7 0
2 years ago
Jim just found a job with a take-home pay of $1,000 per month. he must pay $500 for rent and $100 for groceries each month. he a
cluponka [151]
18 months is your answer
5 0
2 years ago
Which of the following terms refers to the study of how organizations function and how they affect and are affected by the envir
Alborosie

Answer:

d. Organizational environment

Explanation:

Indeed, organizational environmental studies how a particular organization is affected by it's operating environment, and how the organization functions under that environment.

Note also that the organizational environment is further divided into:

- the internal environment and

- the external environment

Put simply, the internal environment consist of factors that affect the organization from within; which are controllable. However, the external environment consist of factors such as political instability, etc that can affect the organization and beyond the control of the organization.

7 0
2 years ago
Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underw
anzhelika [568]

Answer:  Profit of charging the optimal block price is 73.5 cent or $0.74.

Explanation:

Given that,

The inverse demand function: P = 25 − 3Q (in cents)

Cost of producing = C(Q) = 1 + 4Q (in cents)

By charging the optimal block price, the firm produce at a point where

Price = Marginal Cost (MC)

MC = 4

Therefore,

25 − 3Q = 4

Q = 7

Consumer Surplus = Profit of charging the optimal block price=0.5 × (y-intercept of the demand curve -MC) × Q

= 0.5(25 - 4) × 7

= 73.5 cent

It is equivalent to $0.74.

7 0
2 years ago
Suppose that furniture production encompasses the following stages: Stage 1: Trees are sold to lumber company. $1,000 Stage 2: L
g100num [7]

Answer:

a)

<em>The value added at each stage</em>

Stage                          Value added($)

1                                   1000

2   (2000-1000) =         1,000

3   (6,000- 2000) =      4,000

4    (10,000 - 6,000) =   4,000

b)

The amount by GDP is increased = $10,000

c) Reduce GDP

Explanation:

Gross domestic product (GDP) which is the total market value of all the final goods and services produced in a country over a given period of time. The GDP can be calculated using the value added approach.

Here the GPD figure is ascertained by summing the amount of additional value created by each factor of production at each stage of the production process of the final product.

a)

<em>The value added at each stage</em>

Stage                          Value added($)

1                                   1000

2   (2000-1000) =         1,000

3   (6,000- 2000) =      4,000

4    (10,000 - 6,000) =   4,000

b)

The amount by GDP is increased = $10,000 which is the total value added or the market value of the final goods

c)

If the lumber were imported it would be deducted from the value of export and thus reduce GDP.  Remember that GDP is the market value of all good and service produced within a given country over certain period of time .

3 0
2 years ago
Read 2 more answers
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