Jessica purchased a home on January 1, 2021, for $500,000 by making a down payment of $200,000 and financing the remaining $300,000 with a loan, secured by the residence, at 6 percent. During 2021 and 2022, Jessica made interest-only payments on this loan of $18,000 (each year). On July 1, 2021, when her home was worth $500,000, Jessica borrowed an additional $125,000 secured by the home at an interest rate of 8 percent. During 2021, she made interest-only payments on the second loan in the amount of $5,000. During 2022, she made interest-only payments on the second loan in the amount of $10,000. What is the maximum amount of the $28,000 interest expense Jessica paid during 2022 that she may 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

Answers

Answer 1

Since Jessica used the proceeds of the second loan to improve her acquired home, the two debts are counted as acquisition indebtedness, and she can deduct $28,000 as an itemized deduction for mortgage interest expense.

Data and Calculations:

Home Purchase on January 1, 2021 = $500,000

Down payment made  $200,000

Mortgage financing obtained = $300,000

Mortgage interest rate = 6%

Interest-only payments in 2021 and 2022 = $18,000 ($300,000 x 6%) each

Additional mortgage on July 1, 2021 = $125,000

Interest rate for the second mortgage = 8%

Interest-only payment in 2021 = $5,000 ($125,000 x 8% x 6/12)

Interest-only payment in 2022 = $10,000 ($125,000 x 8%)

Total interest-only payment in 2022 = $28,000 ($18,000 +$10,000)

Question Options:

a. $0

b. $10,000

c. $26,353

d. $26,000

e. $28,000

Thus, the maximum amount that Jessica may deduct as an itemized deduction is $28,000.

Learn more: https://brainly.com/question/14187831


Related Questions

Keitaro, a university administrator, needs to send an official memo to the directors of the registration, advising, and financial aid divisions, as well as their supervisors. To determine who should receive his memo, Keitaro consults the Multiple Choice organization chart. grapevine. lateral network. social media policy.

Answers

Considering the situation described above, to determine who should receive his memo, Keitaro would need to consult "Organization Charts."

This is because an Organization Chart is a pictorial representation that shows the structure of an organization.

It usually depicts those or the top ranks at the top, while the lower ranks are placed accordingly.

It also shows the relationships and positions or jobs of the ranks or individuals presented on the organization charts.

Organization charts is often referred to as organogram.

Hence, in this case, it is concluded that the correct answer is option A. "organization chart."

Learn more here: https://brainly.com/question/2920544

supposing mr john started business with 1,000,000 report financial 70,000 machineries 50,000 goods 500,000 rentage 200,000 what is the capital of the business? supposing Mr John took away 100,000 for his personal use it is called what? according to business entity capital is called what? according to business entity concept what are the assets of the company ​

Answers

ANSWER:

An accounting transaction is a business activity or event that causes a measurable change in the accounting equation. An exchange of cash for merchandise is a transaction. Merely placing an order for goods is not a recordable transaction because no exchange has taken place. In the coming sections, you will learn more about the different kinds of financial statements accountants generate for businesses.

In the previous section we described specific types of accounts that business activities fall into, namely:

Assets (what it owns)

Liabilities (what it owes to others)

Equity (the difference between assets and liabilities or what it owes to the owners)

These are the building blocks of the basic accounting equation. The accounting equation is:

ASSETS = LIABILITIES + EQUITY

For Example:

A sole proprietorship business owes $12,000 and you, the owner personally invested $100,000 of your own cash into the business. The assets owned by the business will then be calculated as:

$12,000 (what it owes) + $100,000 (what you invested) = $112,000 (what the company has in assets)

How can big data can use to achieve banking

Answers

Answer:

Track customer spending patterns.

Segment customers based on their profiles.

Implement risk management processes.

Personalize product offerings.

Incorporate retention strategies.

Collect, analyze, and respond to customer feedback.

Explanation:

Big data solutions in banking allow companies to collect, make sense of and share branch (as well as individual employee) performance metrics across departments in real time. This means better visibility into the day-to-day operations and an elevated ability to proactively solve any issues.

Identify THREE factors you would take into account when scheduling an appointment for an executive who is travelling to Madrid next month.

Answers

1. The budget

2. The traveler's flight preferences

3. If the executive's passport is valid and will not be expiring in the near future.

In the context of balance sheets, accounts receivable is an example of

Answers

Answer:

In the context of balance sheets, accounts receivable is an example of current liabilities immovable assets, current assets depreciated liabilities

Explanation:

Hope It helps And Please Mark Me As Brainliest

Answer:

In the context of balance sheets, accounts receivable is an example of current liabilities immovable assets current assets depreciated liabilities

Explanation:

Mega Corp. has departments for marketing, sales, finance, customer service, human resources, and production. Mega Corp. is organized by

Answers

Because the corporation has department for marketing, sales, finance, customer service, human resources, production, then, we can conclude that Mega Corp. is organized by Functional Structure.

The Functional Structure is the type of organizational structure where employees are grouped according to their specialized roles or tasks.

The functional structure is most used type of organizational structures in the modern world.

Therefore, in conclusion, because the corporation has department for marketing, sales, finance, customer service, human resources, production, then, we can conclude that Mega Corp. is organized by Functional Structure.

Learn more about this here

brainly.com/question/24660632

why it is so difficult to compare unemployment rates in the United States with unemployment rates in poorer countries?

Answers

Answer: unemployment rate depends solely on the size of labor force and every country has different labor force sizes.

Explanation: https://coursepivot.com/tutor-answers/which-of-the-following-helps-explain-why-it-is-so-difficult-to-compare-unemployment-rates-in-the-united-states-with-unemployment-rates-in-poorer-countriesselect-the-correct-answer-below/#:~:text=Cross-country%20comparisons%20of%20unemployment%20rates%20is%20difficult%20to,and%20every%20country%20has%20different%20labor%20force%20sizes.

On January 1, 2019, Santo Company purchased a computer system for $30,500. The system had an estimated useful life of 5 years and no salvage value. At January 1, 2021, the company revised the remaining useful life to two years. What amount of depreciation will be recorded for 2021 and 2022

Answers

The amount of depreciation for both 2021 and 2022 based on the information given is $9,150

First find the accumulated depreciation for 2019 and 2020.

= Cost of system / Useful life x 2 years

= 30,500 / 5 x 2

= $12,200

The amount left to be depreciated is therefore:

= Cost - Accumulated depreciation

= 30,500 - 12,200

= $18,300

The depreciation for the next two years will be:

= Amount to be depreciated / Useful life

= 18,300 / 2

= $9,150

In conclusion, both 2021 and 2022 will see a depreciation of $9,150.

Find out more at https://brainly.com/question/15407920.

The general message of the full disclosure principle is that: a. information is symmetric. b. information is costly to fake. c. producers should offer lifetime warranties for low quality products. d. the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one.

Answers

Based on financial and accounting principles, the general message of the full disclosure principle is that "the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one."

This is because the full disclosure principle state that all information should be documented in a company or individual financial statements which are believed to affect a reader's knowledge of that specific financial statement.

This ensures that every party that needs to access the financial statements under concern should fully understand them without missing any form of information.

Otherwise, any missing link or information will be ruled in favor of the less favored party in a legal situation.

Hence, in this case, it is concluded that the correct answer is option D.

Learn more here: https://brainly.com/question/24280368

why are there so many creapy online kids make your own answer to the question

Answers

Answer:

Because they are objective-less

Explanation:

They just try to be creepy for no reason other than a passtime. Well it's their thing, I really don't understand their negative attitude.

Answer:

I feel like these people on brainly are just the cyberbullier's who just be super rude to hurt someone's emotions.

Explanation:

I also know those bots on brainly. You must know them, they literally just past a bitly link in there, and wow, like what the heck, who won't know that that is a total VIRUS! So yeah, good thing there is someone called "Katie" on brainly who clears those answers. But the problem is that, other people can't answer that question anymore.

Thanks, hope this helped you.

In property and casualty insurance the combined ratio is equal to ______________________ divided by total premiums written. the sum of the loss ratio plus loss adjustment expenses

Answers

The formula for deriving the combined ratio is {(Sum of the loss ratio  + General expenses + broker's commissions) / Total premiums written].

In insurance, the combined ratio is used to measure the profitability of an insurance company in terms of its daily underwriting business.

The formula for deriving the combined ratio is {(Sum of the loss ratio  + General expenses + broker's commissions) / Total premiums written]

In conclusion, the combined ratio helps to evaluate the insurance company's profitability and financial health through measurement of its day-to-day performance.

Learn more about this here

brainly.com/question/2202005

Which of the following activities would waste the most time?
a. Rich tries to multitask writing a report and reading a memo, and has to re-write the report and
re-read the memo, which takes an hour.

b. During a departmental meeting, Barry and Scott make small talk for twenty minutes while the
other six meeting members sit and listen.

c. Greg asks Tony a question about work and then talks to him for ten minutes about who will
win the game tonight.

d. Barbara composes an e-mail during her thirty minute train ride to work.

Answers


Answer:A

The answer should be “A” because it does say it takes an hour and that seems like the most time consuming task out of all of them

4. Will Juan Carlos meet his $4,000 goal for every year in college with this plan? Explain your .

Answers

With this plan, Juan Carlos will not meet his goal because with this plan he can save only $2400.

Based on the information about the plan, let's calculate how much will Juan Carlos save.

Important information:

Money Juan Carlos saves per hour: $10 Number of hours per week: 20 hoursTotal of money every week: $200

We also know he will work during the summer that is 12 weeks.

$200 x 12 weeks = $2400

This means the total of money he can save is $2400 and therefore he can't save $4000 by using that plan.

Note: This question is incomplete because information about the plan is missing, here is the missing information.

Juan Carlos words 20 hours/week during the summer, 0 hours/week during the school year, but saves 100% of his income.There are 40 weeks in a school year and 12 weeks of summer. Assum Juan Carlos makes $10/hr

Learn more in: https://brainly.com/question/25192498

Most people do not select a place of residence based on: A. lifestyle B. needs C. values. D.attitudes E. credit score

Answers

It is generally uncommon for people to decide a place of residence based on E. credit score

When people look for places to stay, they think about their:

Lifestyle and what house it suits that Their needs from a place Their values and whether the place would support them Attitudes towards what kind of place they should live

People only think about the credit score when it comes to paying the rent of the place or being able to buy it. It is generally not a factor when selecting a place of residence initially.

In conclusion, most people do not select residence based on credit score.

Find out more at https://brainly.com/question/19435264.

You manage the worksheet shown below and it contains information for the company's 1500 employees,
You are asked to provide a list of all of the employees who are full time and make more than $45,000 per
year. What is the best way to create the list?

Answers

Answer:

3

Explanation:

You manage the worksheet shown below and it contains information for the company's 1500 employees. You are asked to provide a list of all of the employees who are full time and make more than $45,000 per year.

The best way for you to create the list of those who make more than $45000 a year and are full time is by using the filter option.

The filter option would be used to highlight the people that are in full employment. After this you have to use the sort to check the compensation column in order to establish those that make more than 45000.

The filter in a spreadsheet helps to put data in a particular category then arrange them based on the criteria that you selected.

The sorting method helps to arrange data based on ascending order or descending order.

Read more on https://brainly.com/question/15358155?referrer=searchResults

Which option helps minimize costs in a project?
O A. adjusting resources
OB. indentifying resources
Oc.
eliminating resources
OD. gathering resources

Answers

Answer:

c

Explanation:

po ang tamang sagon po

eliminating resources it saves money D would be incorrect because the key is making it less exspesive

Suppose some banks decide to increase their holdings of excess reserves relative to deposits. Ceteris paribus, this action will put _______ pressure on the money supply, and to reduce the impact of this action the Fed could _______.

Answers

The action of the bank will put decreased pressure on the money supply, and to reduce the impact of this action, the Fed could decrease the discount rate.

Basically, a decrease in discount rate will make it easy and cheaper for commercial banks to borrow money from Federal Reserve System and thus, results to increase in available credit and lending in the economy

Therefore, if the commercial banks decide to increase their holdings of excess reserves supposed to be remitted to Feds, then, this will put decreased pressure on the money supply, and the Fed would act by decreasing the discount rate.

Read more about this here

brainly.com/question/20023706

How does changes in the market for new cars impact the market for second-hand cars? (9 marks)

Help me answer this

Answers

The global used cars market was valued at $828.24 billion in 2019, and is projected to reach $1,355.15 billion by 2027, registering a CAGR of 8.3% from 2020 to 2027. By vehicle type, the SUV segment was the highest revenue contributor in 2019, accounting for $338.61 billion, and is estimated to reach $533.39 billion by 2027, registering a CAGR of 7.80% during the forecast period

Beautinator Cosmetics borrowed $152,300 from a bank for three years. If the quoted rate (APR) is 11.75 percent, and the compounding is daily, what is the effective annual rate (EAR)

Answers

ear ear 11.75 beep boop bop

The effective annual interest rate (EAR) is the rate of interest that shows the actual rate that is owed on a loan. The effective annual interest rate reflects the impacts of compounding.  

EAR = (1 + periodic interest rate)^m - 1

Periodic interest rate = APR /m

11.75 / 365 = 0.032192%

m =  number of compounding = 365

EAR = (1 + 0.000322)^365 - 1 = 0.1247 = 12.47%

A similar question was answered here: https://brainly.com/question/20562753

Credit score is used to determine your financial worth ?

Answers

The higher the score, the better a borrower looks to potential lenders. A credit score is based on credit history: number of open accounts, total levels of debt, and repayment history, and other factors. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner.

Answer:

Explanation:

I live in Canada.

I have been told that my credit score is quite high. That's because I don't live beyond what I can pay for with this month's paycheck. I don't think anyone would judge my net worth by my credit score. In fact, bank loans won't think of stopping at credit rating. They (in Canada at least) would never think of giving out a loan whose repayment    per month exceeded 1/3 of my paycheck.

Maybe I just have a tough bank, but I certainly agree with their policy.

During the implementation stage, the Fallon creative team works with Fallon media buyers to select and schedule the media. Because Fallon Worldwide offers a number of services including research, media, copy, artwork, and production, it would be classified as a(n)

Answers

Due to the fact that Fallon Worldwide offers a number of services including research, media, copy, artwork, and production, it would be classified as a full service agency.

A full service agency simply means a fully integrated advertising and marketing agency that provides a complete set of services. Such an agency can handle all the marketing aspects of a business.

In this case, since Fallon Worldwide offers a number of services including research, media, copy, artwork, and production, then it would be classified as a full service agency.

Read related link on:

https://brainly.com/question/25483521

Dean, supervisor at NeonColors Inc., has a conflict with his colleague, Nathan, because they could not agree on the design of a product. As what type of conflict can this be best categorized

Answers

As what type of conflict can this be best categorized is interpersonal conflict.

Interpersonal conflict can be defined as a conflicts or disagreement  that occur between two or more people.

Based on the given scenario this type of  conflict is an interpersonal conflict at workplace as it involve two people which is Nathan and his supervisor due to lack of agreement.

To resolve this conflict the best option is for Nathan and his supervisor to resolve their difference so as to increase their productivity at work.

Inconclusion this type of conflict can this be best categorized is interpersonal conflict.

Learn more about interpersonal conflict here:https://brainly.com/question/3256121

The short-run aggregate supply curve will decrease if:

Answers

Hi there!

The short-run aggregate supply curve can shift left (decrease) as a result of:

Increases in Input or Commodity Costs:

           - Ex 1: If nominal wages increase, businesses will have to pay workers greater amounts of money, meaning that employing workers is more expensive.

           - Ex 2: If the price of commodities go up (such as steel, oil, etc.), businesses will have to pay more to produce goods, decreasing supply.

Increase in government regulations:

            - Ex 1: If government regulations are increased for limiting fossil fuel usage, many industries will experience a decrease in productivity, shifting the supply curve left.

Increase in business taxes:

             - Ex 1: If the government increases taxes on businesses, businesses will have to divert money that could have been spent on materials, labor, etc. and pay government taxes. This results in a decrease in aggregate supply.

There are many other reasons for the SRAS curve to shift, but these are some of the main ones.

why it is so difficult to compare unemployment rates in the United States with unemployment rates in poorer countries?

Answers

Answer:

The unemployment rate isn't an accurate measure of joblessness simply because it doesn't consider everyone who doesn't have a job

a price setter stresses the ________ side of the pricing problem and the price is set by looking at ________.

Answers

Answer:

Cost side. second blank is the production and marketing.

Which of the following is most likely to happen if a borrower fails to make
payments on time?
A. The borrower's credit score will decrease.
B. The lender will charge a lower interest rate.
C. The lender will increase the credit limit.
D. The borrower's creditworthiness will improve.

Answers

A. The borrower's credit score will decrease.

Answer:

A. The borrower's credit score will decrease.

Explanation:

A growing trend for regulating natural monoplies is the use of incentive regulation. A) Describe how incentive regulation works to improve efficiency in the market. B) Describe how the company can benefit from incentive regulation. C) Discuss common problems that might exist with incentive regulation.

Answers

The government is known to regulate monopolies through Price capping where they reduce price increases.

A.   How incentive regulation works to improve efficiency in the market;

Incentive regulation is uses via regulatory tools, price setting regimes along with some self incentives. The efficiency improvement by incentive regulation is done through controllable costs, benchmarking and the setting of performance targets associated with both rewards and penalties.

Incentive regulation is the known way of conducting price level regulation. It also improves efficiency as it hinders or mitigate revenue erosion as it measures both inputs and outputs.

B. How the company can benefit from incentive regulation.

The benefits of the company is that it makes a lot of opportunities available for maximizing earnings via internal efficiency methods such as reduction in both capital and operating expenditures.

C. The common problems that might exist with incentive regulation.

Incentives regulation often brings about a number of challenges, such as;

Holding or maintaining incentives for cost reduction and still adjusting prices to underlying costs.  Prices need to be set so that the regulated firm benefits from cost reduction.It makes sure that firms have a good amount of assurance of cost-recovery, while limiting the length for “gold-plating as a result of set out or guaranteed returns on investment. In this way, organizations will only invest if sunk costs can be gotten back via retained cost savings. It makes sure that operators do not jump on quality.

Learn more from

https://brainly.com/question/18883089

As a company moves a customer through the purchasing process, the percentage of prospects changes. Which stage of the AIDA process has the smallest percentage of prospects associated with it

Answers

Considering the situation described above, the stage of the AIDA process that has the smallest percentage of prospects associated with it, "the action stage."

AIDA is a model that is used in marketing to evaluate the process in which consumers go through before making a purchase decision.

The AIDA model is an acronym for Attention, Interest, Desire, and Action.

Of all the different stages in the AIDA, the Action Stage is considered to have the smallest percentage of prospects.

This is because prospective consumers might go through the other stages without actually taking action, which is a purchase.

Hence, in this case, it is concluded that the correct answer is "The action stage."

Learn more here: https://brainly.com/question/14328429

Answer:

the correct answer is "The action stage."

Explanation:

Which items are on both the balance sheet and the statement of owner's equity?
Question 17 options:

Capital

Additional owner's investments

Net loss

Owner's withdrawals

Answers

Answer:

Additional Owners Investment

Explanation:

You can find some clues, the word "additional" and the word "owner's."

Hope it helps.

Types of report writing.

Answers

Answer:

here are three examples

Explanation:

1. formal or informational reports

2. short or long reports

3.proposal reports

Other Questions
13. Wheres Jane? I havent seen her for weeks. ~ Im not sure. She__________ (travel) in Europe. Click this link to view O*NET's Work Activities section for Postsecondary Education Administrators.Note that common activities are listed toward the top, and less common activities are listed toward the bottom.According to O*NET, what are common work activities performed by Postsecondary Education Administrators?Check all that apply.making decisions and solving problemsoperating vehiclescommunicating with supervisors, peers, or subordinatesestablishing and maintaining interpersonal relationshipsrepairing and maintaining electronic equipmentdrafting, laying out, and specifying technical devices, parts, and equipment Solve for r.-27 = r/10 - 36r = Can someone help me with this question fast please.Determine how changes in parameters will affect a graph. For large parties, a restaurant charges a reservation fee of $25, plus $19 per person. The total charge for a party of x people is f(x) = 19x + 25.Determine the new function g(x), if the reservation fee is raised by $25 and the per-person charge is lowered to $14?g(x)=_____x+_____- how can you prepare a balanced ration for pigs from locally available ingredients ? Which of the following properties of equalities cant be used when solving 3x+6=10-x A square is 3 inches by 3 inches. What is its area Help me out and answer correctly and if it's correct I will give brainliest 1. Which of the following statements best identifies a central ideaof the text?. Congress should pass a new civil rights bill to protect AfricanAmerican's right to vote.OB The "American Problem is Congress' refusal to act andcreate a new civil rights bill.O c The American people do not want Congress to pass a billthat will protect the right of all citizens to vote.OD The American people do not know that many citizens are notallowed to vote because of their race. how many times can 2 go into 67fourth grade help Read this paragraph from I Never Had It Made.Branch Rickey lost that fight, but when he became the boss of the Brooklyn Dodgers in 1943, he felt the time for equality in baseball had come. He knew that achieving it would be terribly difficult. There would be deep resentment, determined opposition, and perhaps even racial violence. He was convinced he was morally right, and he shrewdly sensed that making the game a truly national one would have healthy financial results. He took his case before the startled directors of the club, and using persuasive eloquence, he won the first battle in what would be a long and bitter campaign. He was voted permission to make the Brooklyn club the pioneer in bringing blacks into baseball.What is the authors purpose for including this paragraph?to inform readers about Branch Rickeys professional careerto inform readers about Branch Rickeys determination Beautinator Cosmetics borrowed $152,300 from a bank for three years. If the quoted rate (APR) is 11.75 percent, and the compounding is daily, what is the effective annual rate (EAR) What changed after the American Revolution? . Circle the correct choice for each statement 1. The number of substances in a mixture (can - cannot) be varied, for a compound they (can - cannot). 2. The different substances in a mixture (can - cannot) be joined chemically; a compound (can - cannot). 3. Substances in a mixture (do - do not) keep their own properties. 4. Substances in a compound (can - cannot) be easily separated; in a mixture, they (can - cannot). 5. Examples of (mixtures - compounds) are air, sea water, and most rocks. 6. Examples of (mixtures - compounds) are water, salt, and sugar. 7. Compounds are made of elements and have a (physical chemical) formula. 8. A (solvent - solute) is the substance that dissolves in another substance. 9. True or False: A mixture cannot have five substances. 10. True or False: In a suspension, a substance may sink to the bottom. I NEED HELP so is for exampleFeO + H2O ---> Fe(OH)2AndFe + 2H20 ---> Fe(OH)2 + H2 The same? Same thing for other metals I HAVE A SEMICIRCLE WITH A DIAMETER 16cm. How do I find the perimeter of the SEMICIRCLE An object's inertia causes it to come to a rest position. a central bank that wants to increase the quantity of money in the economy will I really need help pls!! The __________ is the process of constant change, often relating to characters or theme within a story.