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In the first year, they paic x bracket. Apprximately eductions? (Round to the

In the first year, they paic x bracket. Apprximately eductions? (Round to the

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Charless bought a home in January and borrowed $424000 to fiınance it. The mortgage interest and principal payment is $2053 per month. In the first year, they paid $18215 in interest, $7052 in principal, and $8322 in property taxes. They are in the 24% marginal tax bracket. Approximately, how much will they save in federal income taxes from home ownership the first year, if itemizing deductions? (Round to the nearest whole dollar.) O $6369 O $4392 O $8061 O $1997
Transcribed Image Text:The Charless bought a home in January and borrowed $424000 to fiınance it. The mortgage interest and principal payment is $2053 per month. In the first year, they paid $18215 in interest, $7052 in principal, and $8322 in property taxes. They are in the 24% marginal tax bracket. Approximately, how much will they save in federal income taxes from home ownership the first year, if itemizing deductions? (Round to the nearest whole dollar.) O $6369 O $4392 O $8061 O $1997
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