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The Stars own a home in New York. They paid $1.2 million for the home several years ago. They originally took out a $1 million
The Stars own a home in New York. They paid $1.2 million for the home several years
ago. They originally took out a $1 million mortgage on the home. In the current year, the
Stars refinanced their home at a time when the home was worth $2 million and the
outstanding mortgage balance was $700,000. Their new mortgage is for $1.3 million.
After the refinancing, the Stars's acquisition debt is:
a. $1.2 million.
b. $700,000.
c. $1.3 million.
d. $1 million.
e. $800,000.
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