contestada

on january 1 of year 1, arthur and aretha franklin purchased a home for $1.68 million by paying $230,000 down and borrowing the remaining $1.45 million with a 4.4 percent loan secured by the home. the franklins paid interest only on the loan for year 1, year 2, and year 3 (unless stated otherwise).

Respuesta :

AmishaSrivastava

A If year 1 is 2017, then the Franklins can deduct 63800 as interest in year 2

Interest = 4.4% x 1450000.

B. $0

The home must have been improved with the help of the loan. Loans with personal interest are not subtracted.

C. $0.

The loan is for personal use only; it is not for house renovations.

What is a loan?

  • The term "loan" describes a category of credit instrument in which a sum of money is lent to another party in return for the value or principal amount to be repaid in the future. Most of the time, the lender will also add interest or finance charges to the principal amount, which the borrower will also be required to pay back along with the principal sum.
  • Loans can be made for a predetermined, one-time sum of money or they can be used as an open-ended line of credit up to a predetermined limit. There are many different types of loans, such as secured, unsecured, commercial, and personal loans.

To learn more about loan from the given link

https://brainly.com/question/11794123

#SPJ4

Otras preguntas