Mary pays $25,000 and secures a mortgage note for $75,000 to purchase a vacation home. She pays $200 to her attorney for reviewing the purchase agreement and $1,500 in points to the mortgage company. Mary's initial basis in the vacation home is:
A. $- 0 -.
B. $25,000.
C. $26,700.
D. $100,200.
E. $101,700.
Answer: D
You might also like to view...
If Acme Global hired 10 new employees last year and at the beginning of this year six were promoted and two left the company, what is the new hire turnover ratio?
A. 60 percent B. 33 percent C. 80 percent D. 40 percent E. 20 percent
What separates a powerful strategy from a run-of-the-mill or ineffective one?
A. management's ability to forge a series of actions, both in the marketplace and internally, that sets the company apart from rivals and produces sustainable competitive advantage B. whether it allows the company to maximize shareholder value in the shortest possible time. C. the speed with which it helps the company achieve its strategic vision D. the proven ability of the strategy to generate maximum profits E. the ability of the strategy to keep the company profitable
A young boy got off his old bicycle that was worth about $50, leaned it against a store front, and while he was in the store a stranger grabbed the bicycle, tossed it in his pickup truck, and drove away with the young boy yelling "stop thief!" The wrongdoer is guilty of robbery
Indicate whether the statement is true or false
A series of equal periodic finite cash flows that occur at the beginning of the period are known as a/an ________
A) ordinary annuity B) annuity due C) perpetuity D) amortization