David agrees to be paid $7,000 to get Jake's old building up to the current Electrical Code. When the work is done, Jake pays David $4,000 and says that's all he owes. David can put a lien on Jake's building for
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5. David agrees to be paid $7,000 to get Jake's old building up to the current Electrical Code. When the work is done, Jake pays David $4,000 and says that's all he owes. David can put a lien on Jake's building for
A. $7,000.
B. $3,000.
C. $11,000.
D. $4,000.
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- 29. Brenda filed suit against her insurance company for deceptive trade practices. She seeks $5,000 in damages; $12,000 for mental anguish; and $10,000 for attorney fees. Her insurance company countersues for slander and seeks $10,000. If the court awards both parties what they are asking, how much would Brenda receive in most jurisdictions? a. $10,000 ob. $17,000 OC. $28,000 Od. $30,000In July 2021, Cassie purchases equipment for $55,000 to be used in her business. Assuming Cassie has a small net loss from her business prior to the deduction, what is the maximum amount of cost recovery Cassie can deduct? a. $55,000 b. $7,860 c. $27,500 d. $31,430A woman decides to purchase a $23000 car, and makes down payment of $3500. She arranges to borrow the remainder from a bank that will charge her 4.5% interest. She will make monthly payments for 4 years. a. Find her monthly payment amount b. determine the total amount she would pay for the car and the total amount of interest paid
- 2 Knowledge of the role of ethics in mathematical pursuits. Pam decides to have a small building constructed in her backyard and hires a contractor to do this for her. The cost of the project will be $24,000. Since this is a substantial amount, Pam and the contractor agree that she will pay the contractor monthly over the course of 3 years and that the contractor will charge interest of 4% APR. Pam pays exactly the monthly payment she is supposed to each month. For her very last payment, the contractor makes a mistake and sends her a bill for half of what it should be. A friend tells Pam that she knows a contractor who would have completed the job for much less than $24,000. C IC W (a) Find Pam's monthly payment. (b) Find the amount of the last bill the contractor sent. (c) Should Pam pay the bill as it was sent or pay the full amount as she had been over the past three years? S #3 X e C d $ 4 C r of % 5 f & t V 6 g hp & 7 b * 00 D O n 9 10 y h j k Sign out m ő 0 Dec 11 р alt 2Problem #1. Jason's uncle loaned him $26,560 to help start a landscaping business. They agreed that Jason would pay off the entire loan plus 3.24% annually compounded interest in 4 years, and that in the meantime he would make monthly deposits into a bank account to make sure that he has the amount needed when the loan comes due. The bank will pay 2.09%. (a) Find the total amount Jason will need to repay the loan. Show your work. (b) How much should each of his monthly deposits be? Show your work.Exercise 13-25 (Algorithmic) (LO. 1) Sally owns real property for which the annual property taxes are $16,030. She sells the property to Kate on April 2, 2021, for $801,500. Kate pays the real property taxes for the entire year on October 1, 2021. Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar. a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $ 3,997 x and Kate can deduct s Feedback b. What effect does the property tax apportionment have on Kate's adjusted basis in the property? Kate's adjusted basis for the property is increased ✓by the s Feedback 12,033 X of the property taxes. c. What effect does the apportionment have on Sally's amount realized from the sale? Sally paid none of the real property taxes and is realized is increased ✔by this amount. Feedback she paid that is apportioned to Sally. ✔permitted to deduct the apportioned share of s d. How would the answers in…
- Problem 4-47 (LO. 4, 5) Roy decides to buy a personal residence and goes to the bank for a $150,000 loan. The bank tells him that he can borrow the funds at 4% if his father will guarantee the debt. Roy's father, Hal, owns a $150,000 CD currently yielding 3.5%. The Federal rate is 3%. Hal agrees to either of the following: • Roy borrows from the bank with Hal's guarantee to the bank. Hal cashes in the CD (with no penalty) and lends Roy the funds at 2% interest. Hal is in the 32% marginal tax bracket. Roy, whose only source of income is his salary, is in the 12% marginal tax bracket. The interest Roy pays on the mortgage will be deductible by him. Considering only the tax consequences, answer the following. a. The loan guarantee: Hal's interest income from the CDs would be $ before taxes and $ 6,000 ✓ before taxes and $ Roy's interest expense from the bank loan would be $ This arrangement would produce an overall negative ✓ cash flow after taxes to the family of $ b. The loan from Hal…2. David Herbert earns $2,475 a month as a security guard for Baldwin Enterprises. His group medical insurance costs $6,600 a year. The company pays 80% of the cost of group insurance. a. Find the percent paid by David. b. How much is deducted each month from his paycheck for medical insurance? All rights reserved.Brandon buys a piece of equipment for $15,000. He pays $5,000 for upgrades in year 1 and the equipment generates $2,000 in cash flow for year 1. In year 2 the equipment generates $8,000, year 3 it generates $4,000, but Brandon sells it for $6,000 but also pays a $500 commission. What is his IRR?a. -1.18%.b. +1.18%.c. -0.8%.d. +0.8%. Same facts as the above question except: Assume a required rate of return of 8%. What is the NPV?a. <3,378>.b. 3,378.c. <2,178>.d. 2,178.
- 28. John Jay paid interest expense of $12,000 on his personal residence original first mortgage this year and $5,000 on a $100,000 home equity credit line also secured by a mortgage on his home Half of the home equity credit line loan proceeds were used to put a new roof on the home and the other half was used to purchase a new car. Assuming the acquisition and home equity limits are not exceeded, how much of the total interest expense is deductible on John's Schedule A as qualified home mortgage interest? O$17,000 O$14,500. O$12,000 29 The Browns borrowed $30,000, secured by their home, to pay their son's college tuition. At the time of the loan, the fair market value of their home was $400,000, and it was unencumbered by other debt. The interest on the loan is treated for itemized deductions as ODeductible points. ONon-deductible home equity (mortgage) interest. ODeductible home equity (mortgage) interest.A building contractor gives a $15,000 promissory note to a plumber who has loaned him $15,000. The note is due in 9 months with interest at 8%. Three months after the note is signed, the plumber sells it to a bank. If the bank gets a 9% return on its investment, how much will the plumber receive? Will it be enough to pay a bill for $ 15,285? How much will the plumber receive?Exercise 14-22 (LO. 3) Juliana purchased land three years ago for $50,000. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $70,000. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $63,000. a. Tom's basis in the land is $ and he has a realized of $ on the sale. b. Assume, instead, that the land has a fair market value of $45,000 on the date of the gift, and that Tom sold the land for $43,000. Tom's basis in the land is $ and he has a realized of $ on the sale.
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