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b.
$800 of interest on a short term loan incurred in September and repair in November. The loan amounts were equally used to pay salaries and municipal bonds until November.
It is given that marginal tax rate is 37% and Christopher is eligible for tax deduction only for 50% of the interest on short term loan.
Amount deductible=Interest amount*[1-(percentage of non deductive interest * marginal tax rate percentage)]
=$800*[1-(50%*37%)]
=$800*0.815
=$652
Therefore, Christopher has ability to deduct $652.
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Required Information [The following information applies to the questions displayed below.] Part 2 of 4 Christopher...
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