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. Ken Doll is considering the purchase of a home from Barbie. He has saved $22,000 for a down payment on a home and will
. Ken Doll is considering the purchase of a home from Barbie. He has saved $22,000 for a down payment on a home and will finance the remainder of the purchase price with a home mortgage loan. Ken Doll has a marginal tax rate of 25 percent and an average tax rate of 22 percent. Kendall will pay $10,800 in mortgage interest this year if he buys the house. Consider the tax implication in the following situations and in both
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