Use RIA Checkpoint to answer the following questions.

11. Calculate the following using the TOOLS, Loan, Amortizing Loan section of Checkpoint. You recently graduated and obtained a great job at a large public accounting firm. You would like to buy a house. After assessing your financial situation, you determine your maximum monthly payment of the loan is $1,800. Assume the market rate of interest is 6%, the amount of the loan is $200,000, and the term of the loan is 15 years. Based on these facts, will you be able to stay within your $1,800 budget?

a. No, the monthly payment is $2,024.90.

b. Yes, the monthly payment is $954.83.

c. No, the monthly payment is $1,989.22.

d. Yes, the monthly payment is $1,687.71.

e. None of the above.

12. Sierra owns a bakery. On her way to work on day, the police pull her over, and give her a $500 ticket for speeding. Is the fine deductible under Internal Revenue Code Section (IRC) 162?

a. Yes, because she was on her to work when it happened.

b. Yes, because it an ordinary and necessary expense of her business.

c. No, because such payments are nondeductible under IRC 162(c)(1).

d. No, because such payments are nondeductible under IRC 162(f)(1).