A prospective buyer is contemplating whether to purchase an apartment which is currently available on the market for the price of $300,000. The Buyer and their partner had a thorough discussion which ended at a stalemate.
If they take out a mortgage, the rent of $1200 they pay currently can instead be regarded as equity for their own place. The family of the buyer is willing to support the purchase by paying the down payment on the apartment as long as the buyer and their partner pay it back monthly over the next 5 years with 2% interest. As a reference, one of the buyer's acquaintances had to put down 20% of the full price and was quoted 4% for a 30 year mortgage.
The partner is not so open to the idea because he thinks that the mortgage rate plus the $200 strata fess will be too much for them. Also, there were news that the apartment prices are expected to fall by 15% in the next 5 years.
The prospective buyer is currently making $3016 per month and their partner $2940(It can be assumed that these remain constant for the next 5 years). Also, both currently possess debt and need to pay it off.
The buyer has $16,000 in student loans for which they will make monthly payments at 4.5% interest quarterly compounded for the next 2 years.
Their partner has $20,000 in student loans with the same interest rates as the buyer and they will pay it off in 36 months. Additionally, they possess a $7500 credit card debt at 9% compounded monthly which will be paid off in the next 3 years as well.
Their current household expenses are $2000. It is assumed these will remain constant long term.
Questions:
1) What is the effective monthly interest for each loan?
2) Using a table in Excel, show month-by-month for the next 5 years (60 months), the buyer and partner's income after expenses and debt, before the rent payment.
If you could solve using Excel, it would be much appreciated.
Instructions: Read the case study below, then answer the questions that follow. Ahmad (19 years old) sent an e-mail to Al-Nahar newspaper, expressing his interest in a 6 months subscription and inquiring about the fees, noting that his home address appeared in the content of the email. The newspaper administration replied by offering him a one-year subscription for the price of 150.000 Lebanese pounds, which includes both a paper copy as well as an electronic one, Ahmad replied by saying that he is ready to contract only if the price is reduced to 100.000 Lebanese pounds. After a few days, Ahmad received an e-mail that contains all the necessary information to access the electronic copy of Al-Nahar newspaper and started to find the hard copy every day on his doorstep. At the end of the year, Al-Nahar administration kept sending the newspaper like usual. After one month, it requested Ahmad to pay the fees of the second-year subscription. However, Ahmad refused to do so, justifying that he was not interested in renewing the contract. The newspaper insisted that the contract is renewed as long as Ahmad did not express his refusal. Ahmad also claimed that the contract is void due to the disequilibrium between the obligations of the parties as he found out that other subscribers had to pay 90.000 Lebanese pounds only. Question number one: (25 marks) Describe from a legal point of view, the steps taken by Ahmad and the newspaper, and clarifying whether they had concluded a contract. Question number two: (25 marks) Explain whether Ahmad must pay the second-year subscription fees. Question number three: (25 marks) Determine the basis on which Ahmad can support his claim about the voidance of the contract due to the disequilibrium between the obligations. List the conditions that should be available for his claim to be accepted. Justify if these conditions are available in this case.Mearcat Corporation earned income before tax of $160,000. Taxable income was $140,000, and the income tax rate was 40%. The journal entry to record Mearcat's income tax expense and income tax liability was: O A. Income Tax Expense 64,000 Income Tax Payable 64,000 O B. Income Tax Expense 56,000 Income Tax Payable 56,000 O c. Income Tax Expense 64,000 Income Tax Payable 56,000 Deferred Tax Liability 8,000 O D. Income Tax Payable 64,000 Income Tax Expense 56,000 Deferred Tax Liability 8,000Required information {The following information applies to the questions displayed below] Henrich is a single taxpayer. In 2020, his taxable income is $450,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. {Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable.) b. His $450,000 of taxable income includes $2,000 of longterm capital gain that is taxed at preferential rates. Income tax Net investment income tax Total tax liability 55 E] Question Completion Status: Attach File Browse My Computer Browse Content Collection QUESTION 32 The following facts relate to Krung Thep Corporation: 15 points Save 1. Deferred tax liability, January 1, 2015, $40,000 2. Deferred tax asset, January 1, 2015, $0 3. Taxable income for 2015, $115,000 4. Pretax financial income for 2015, $200,000 5. Cumulative temporary difference at December 31, 2015, giving rise to future taxable amounts, $220,000 6. Cumulative temporary difference at December 31, 2015, giving rise to future deductible amounts, $35, 000 7. Tax rate for all years, 40% 8. The company is expected to operate profitably in the future. Instructions: a Compute income taxes payable for 2015. b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015. Prepare the income tax expense section of the income statement for 2015, beginning with the line "income before income taxes." Browse My Computer Browse Content Collection Attach FileD Question 9 2 pts Many economists believe that O the corporate income tax satisfies the goal of horizontal equity. O the corporate income tax does not distort the incentives of customers. O the corporate income tax is more efficient than the personal income tax. O workers and customers bear much of the burden of the corporate income tax. Previous Next
