Fran, who is in the 35% tax bracket, recently collected $100,000 on a life insurance policy she…


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Fran, who is in the 35% tax bracket, recently collected $100,000 on a life insurance policy she… 1 answer below » LO.4, 5 Fran, who is in the 35% tax bracket, recently collected $100,000 on a life insurance policy she carried on her father. She currently owes $120,000
on her personal residence and $120,000 on business property. National Bank holds the mortgage on both pieces of property and has agreed to accept $100,000
in complete satisfaction of either mortgage. The interest rate on the mortgages is 8%, and both mortgages are payable over 10 years. What would be the tax
consequences of each of the following alternatives assuming that Fran currently deducts the mortgage interest on her tax return? View complete question » LO.4, 5 Fran, who is in the 35% tax bracket, recently collected $100,000 on a life insurance policy she carried on her father. She currently owes $120,000
on her personal residence and $120,000 on business property. National Bank holds the mortgage on both pieces of property and has agreed to accept $100,000
in complete satisfaction of either mortgage. The interest rate on the mortgages is 8%, and both mortgages are payable over 10 years. What would be the tax
consequences of each of the following alternatives assuming that Fran currently deducts the mortgage interest on her tax return? a. Retire the mortgage on the residence. b. Retire the mortgage on the business property. Which alternative should Fran select? View less » Dec 10 2013 05:52 PM

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