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Answer the following question dealer could not be deducted on Bella's federal tax return. a. Calculate the after-tax cost of borrowing from the motorcycle dealership.
Answer the following question
dealer could not be deducted on Bella's federal tax return. a. Calculate the after-tax cost of borrowing from the motorcycle dealership. b. Calculate the after-tax cost of borrowing through a second mortgage on Bella's home. c. Which source of borrowing is less costly for Bella? d. Should Bella consider any other factors when deciding which loan to take out? a. The after-tax cost of borrowing from the motorcycle dealership is %. (Round to the nearest whole percentage.) b. The after-tax cost of borrowing through a second mortgage is _. (Round to two decimal places.) c. Which source of borrowing is less costly for Bella? (Select the best answer below.) A. Bella should borrow by taking the dealership loan. B. Bella should borrow by taking the second mortgage. C. Both loans have the same rate of 35%, so Bella should choose the loan she likes best. D. Both loans have the same rate of 35%, so Bella should not take either loan. d. Is there any other consideration that Bella ought to think about when deciding which loan to take out to pay for the motorcycle? (Select the best answer below.) A. Using the motorcycle dealership loan does put Bella at risk of losing her home if she is unable to make the loan payments. B. Using the second home mortgage does put Bella at risk of losing her motorcycle if she is unable to make the mortgage payments. C. Using the motorcycle dealership loan does put Bella at risk of losing her home and motorcycle if she is unable to make the loan payments. D. Using the second home mortgage does put Bella at risk of losing her home if she is unable to make the mortgage paymentsStep by Step Solution
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