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The Wimoths plan to purchase a house but want to determine the after-tax cost of...

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Accounting

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The Wimoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. Given their projected taxable income, the Wilmoths are in the 24% Federal income tax bracket and the 8% state income tax bracket (i.e., an aggregate marginal tax bracket of 32% ). Assume that the Wilmoths will benefit from itemizing their deductions for both Federal and state purposes. The total cash outiay during the first year of ownership will be $30,200($3,020 principal payments, $27,180 qualified residence interest payments). If required, round your interim calculation to nearest dollar. As a result, the initial year after-tax cost of financing the purchase of the home will be s

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