Helen, who is single, is considering purchasing a residence that will provide an $18,000 tax deduction for property taxes and mortgage interest. If her marginal tax rate is 24% and her effective tax rate is 20%, what is the amount of Helen's tax savings from purchasing the residence?
A) $3,600
B) $4,320
C) $3,200
D) $18,000
B) $4,320
$18,000 × .24 marginal rate = $4,320 tax savings.
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A. analysis B. talent C. production D. work process E. products
Portia owes Bon $500 on their roof repair contract, but refuses to pay. To collect, Bon files a me¬chanic's lien. Under a mechanic's lien, security for the debt is repre¬sented by
a. Portia's personal property. b. Portia's real estate. c. the $500 owed under the contract. d. the contract.
How is preferred stock similar to bonds?
A) Preferred stockholders receive a dividend payment (much like interest payments to bondholders) that is usually fixed. B) Dividend payments to preferred shareholders (much like bond interest payments to bondholders) are tax deductible. C) Investors can sue the firm if preferred dividend payments are not paid (much like bondholders can sue for non-payment of interest payments). D) Preferred stock is not like bonds in any way.
The money that the policy holder is entitled to if the policy is terminated is known as the face value
Indicate whether this statement is true or false.