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On April 1, year 1, Mary borrowed $140,000 to refinance the original mortgage on her principal residence. Mary paid 1 points to reduce her interest rate from 8 percent to 7 percent. The loan is for a 30-year period. How much t can Mary deduct in year 1 for her points paid?

On April 1, year 1, Mary borrowed $140,000 to refinance the original mortgage on her principal residence. Mary paid 1 points to reduce her interest rate from 8 percent to 7 percent. The loan is for a 30-year period. How much t can Mary deduct in year 1 for her points paid?

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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On April 1, year 1, Mary borrowed $140,000 to refinance the original mortgage on her principal residence. Mary paid 1 points to reduce her interest rate from 8 percent to 7 percent. The loan is for a 30-year period. How much can Mary deduct in year 1 for her points paid? Multiple Choice O $47.0 $35.0. $1,050. $1,400.
Transcribed Image Text:On April 1, year 1, Mary borrowed $140,000 to refinance the original mortgage on her principal residence. Mary paid 1 points to reduce her interest rate from 8 percent to 7 percent. The loan is for a 30-year period. How much can Mary deduct in year 1 for her points paid? Multiple Choice O $47.0 $35.0. $1,050. $1,400.
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