1. A person was considering buying a house priced at $280,000. A mortgage company claimed the interest rate for the 20-year loan is 4.15%.
The company also estimated that the points and Appraisal, Credit Report, Processing, Document Preparation, Administration, Underwriting, Flood Certificate, Tax Service, Wire Transfer, and other fees would be $16,500 in total.
a. What would be the monthly payment, if the person decided to borrow 80% of the cost of the house and 100% of the processing fees?
b. What is the APR of the loan?
c. If the person accepts the terms of the loan on Feb. 28, 2010, the first monthly payment is due on March 31. How much mortgage would have been paid off after the payment on January 31, 2018?
d. How much interest charge could this person claim for deduction in the 2017 Tax Return, i.e. the total interest occur during year 2017?
2. ABC Company was founded in 20X1 and had the following taxable income through 20X6:20X1 20X2 20X3 20X4 20X5 20X6 $300,000 $70,000 $900,000 -$1,300,000 $550,000 $350,000Compute the corporate income tax or tax refund in each year, assuming the graduated tax rates listed in Chapter 2.