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Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from

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Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analysis.) Note: Round your intermediate colculations to the neorest whole dollar amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of I'ving in the home for 2022? Assume that the Jacobys' interest rate is 570 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate colculations to the nearest whole dollor amount. Assume that on March 1, 2022, the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part (d), except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022. Complete this question by entering your answers in the tabs below. Assume that on March 1, 2022, the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The lacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. What amount of taxes must they pay on the gain, if any? Assume that on March 1, 2022, the Jacobys sold their home for $211,000; so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140.000 principal of the mortgage. (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105.000. Assume they make interest-only payments on the loan d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same focts as in part (d). except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax bability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022 Complete this question by entering your answers in the tabs below. Assume the same facts as in part (d), except that the lacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the lacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022. - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put their money into their taxable annulty account, where they eam 5 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decisions by answering the following questions. Note: Leove no onswer blenk. Enter zero if opplicoble. Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analysis) Note: Round your intermediate colculations to the nearest whole dollor amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of I wing in the home for 2022 ? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollor amount. Assume that on March 1, 2022 the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the saie proceeds to (1) pay off the $140.000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part iof, except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022. Complete this question by entering your answers in the tabs below. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and lignore the time value of money.) Noter Do not round intermediate calculations. Round your final answer to 2 decimal places. Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analysis.) Note: Round your intermediate calculations to the nearest whole dollor amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of Iiving in the home for 2022? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollar amount. Assume that on March 1, 2022, the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the goin, if any? e. Assume the same facts as in part (d), except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022. Complete this question by entering your answers in the tabs below. Assume that on March 1, 2022, the lacobys sold their horne for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different. state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. What gain or loss do the Jacobys realize and recognize on the sale of their home? - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put their money into their taxable annuity account, where they earn 5 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decisions by answering the following questions. Note: Leove no onswer blonk. Enter zero if opplicoble. Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? include income from the annuity account in your analysis) Note: Round your intermediote calculations to the nearest whole doller amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a rectuced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money) Note: Do not round intermediate colculations. Round your final onswer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of ining in the home for 2022 ? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollar amount. Assume that on March 1, 2022, the Jacobys sold their home for $211,000,50 that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only \$105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part (d), except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022 Complete this question by entering your answers in the tabs below. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analyais.) Note: Round your intermediate calculations to the nearest whole dollar amount. - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put their money into their taxable annuity account, where they earn 5 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decisions by answering the following questions: Note: Leave no answer blank. Enter zero if opplicable. Required: o. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analysis.) Note: Round your intermediate calculations to the nearest whole dollar amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of living in the home for 2022 ? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollar amount. Assume that on March 1, 2022, the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part (d), except that the Jacobys seil their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022 Complete this question by entering your answers in the tabs below. What is the after-tax cost (in interest and property taxes) of living in the home for 2022? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollar amount. Derek and Meagan Jacoby recently graduated from State University, and Derek accepted a job in business consulting while Meagan accepted a job in computer programming. Meagan inherited $44,000 from her grandfather, who recently passed away. The couple is debating whether they should buy or rent a home. They located a rental home that meets their needs. The monthly rent is $2,650 They also found a three-bedroom home that would cost $184,000 to purchase. The Jacobys could use Meagan's inheritance for a down payment on the home. Thus, they would need to borrow $140,000 to acquire the home. They have the option of paying two discount points to receive a fixed interest rate of 4.50 percent on the loan or paying no points and receiving a foxed interest rate of 570 percent for a 30 -year fixed loan. Though anything could happen, the couple expects to live in the home for no more than five years before relocating to a different region of the country. Derek and Meagan don't have any school-related debt, so they will save the $44,000 if they don't purchase a home. Also, consider the following information: - The couple's marginal tax rate is 24 percent. - Regardless of whether they buy or rent, the couple will itemize their deductions and have the ability to deduct all of the property taxes from the purchase of a residence. - If they buy, the Jacobys would purchase and move into the home on January 1, 2022 - If they buy the home, the property taxes for the year are $4,000. - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put their money into their taxable annuity account, where they earn 5 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decisions by answering the following questions: Note: Leave no answer blank. Enter zero if applicable. Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? include income from the annuity account in your analysis.) Note: Round your intermediote calculations to the neorest whole dollar amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of INing in the home for 2022? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole doliar amount. Assume that on March 1, 2022, the Jacobys sold theif home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principol of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only \$105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part (d), except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analysis.) Note: Round your intermediate colculations to the neorest whole dollar amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of I'ving in the home for 2022? Assume that the Jacobys' interest rate is 570 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate colculations to the nearest whole dollor amount. Assume that on March 1, 2022, the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part (d), except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022. Complete this question by entering your answers in the tabs below. Assume that on March 1, 2022, the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The lacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. What amount of taxes must they pay on the gain, if any? Assume that on March 1, 2022, the Jacobys sold their home for $211,000; so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140.000 principal of the mortgage. (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105.000. Assume they make interest-only payments on the loan d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same focts as in part (d). except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax bability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022 Complete this question by entering your answers in the tabs below. Assume the same facts as in part (d), except that the lacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the lacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022. - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put their money into their taxable annulty account, where they eam 5 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decisions by answering the following questions. Note: Leove no onswer blenk. Enter zero if opplicoble. Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analysis) Note: Round your intermediate colculations to the nearest whole dollor amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of I wing in the home for 2022 ? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollor amount. Assume that on March 1, 2022 the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the saie proceeds to (1) pay off the $140.000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part iof, except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022. Complete this question by entering your answers in the tabs below. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and lignore the time value of money.) Noter Do not round intermediate calculations. Round your final answer to 2 decimal places. Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analysis.) Note: Round your intermediate calculations to the nearest whole dollor amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of Iiving in the home for 2022? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollar amount. Assume that on March 1, 2022, the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the goin, if any? e. Assume the same facts as in part (d), except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022. Complete this question by entering your answers in the tabs below. Assume that on March 1, 2022, the lacobys sold their horne for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different. state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. What gain or loss do the Jacobys realize and recognize on the sale of their home? - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put their money into their taxable annuity account, where they earn 5 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decisions by answering the following questions. Note: Leove no onswer blonk. Enter zero if opplicoble. Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? include income from the annuity account in your analysis) Note: Round your intermediote calculations to the nearest whole doller amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a rectuced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money) Note: Do not round intermediate colculations. Round your final onswer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of ining in the home for 2022 ? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollar amount. Assume that on March 1, 2022, the Jacobys sold their home for $211,000,50 that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only \$105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part (d), except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022 Complete this question by entering your answers in the tabs below. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analyais.) Note: Round your intermediate calculations to the nearest whole dollar amount. - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put their money into their taxable annuity account, where they earn 5 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decisions by answering the following questions: Note: Leave no answer blank. Enter zero if opplicable. Required: o. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the annuity account in your analysis.) Note: Round your intermediate calculations to the nearest whole dollar amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money.) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of living in the home for 2022 ? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollar amount. Assume that on March 1, 2022, the Jacobys sold their home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part (d), except that the Jacobys seil their home for $170,500 and they pay a $7,500 commission. What effect does the sale have on their 2022 income tax liability? Recall that the Jacobys are subject to an ordinary marginal tax rate of 24 percent, and assume that they do not have any other transactions involving capital assets in 2022 Complete this question by entering your answers in the tabs below. What is the after-tax cost (in interest and property taxes) of living in the home for 2022? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole dollar amount. Derek and Meagan Jacoby recently graduated from State University, and Derek accepted a job in business consulting while Meagan accepted a job in computer programming. Meagan inherited $44,000 from her grandfather, who recently passed away. The couple is debating whether they should buy or rent a home. They located a rental home that meets their needs. The monthly rent is $2,650 They also found a three-bedroom home that would cost $184,000 to purchase. The Jacobys could use Meagan's inheritance for a down payment on the home. Thus, they would need to borrow $140,000 to acquire the home. They have the option of paying two discount points to receive a fixed interest rate of 4.50 percent on the loan or paying no points and receiving a foxed interest rate of 570 percent for a 30 -year fixed loan. Though anything could happen, the couple expects to live in the home for no more than five years before relocating to a different region of the country. Derek and Meagan don't have any school-related debt, so they will save the $44,000 if they don't purchase a home. Also, consider the following information: - The couple's marginal tax rate is 24 percent. - Regardless of whether they buy or rent, the couple will itemize their deductions and have the ability to deduct all of the property taxes from the purchase of a residence. - If they buy, the Jacobys would purchase and move into the home on January 1, 2022 - If they buy the home, the property taxes for the year are $4,000. - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put their money into their taxable annuity account, where they earn 5 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decisions by answering the following questions: Note: Leave no answer blank. Enter zero if applicable. Required: a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? include income from the annuity account in your analysis.) Note: Round your intermediote calculations to the neorest whole dollar amount. b. What is the approximate break-even point in years (or months) for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money) Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. c. What is the after-tax cost (in interest and property taxes) of INing in the home for 2022? Assume that the Jacobys' interest rate is 5.70 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. Note: Round your intermediate calculations to the nearest whole doliar amount. Assume that on March 1, 2022, the Jacobys sold theif home for $211,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $140,000 principol of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only \$105,000. Assume they make interest-only payments on the loan. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home? d2. What amount of taxes must they pay on the gain, if any? e. Assume the same facts as in part (d), except that the Jacobys sell their home for $170,500 and they pay a $7,500 commission. What

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