Question
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
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?
a)1400
b)35
c)47
d)1050
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
2nd Canadian Edition
0471413658, 978-0471413653
