A Small Office Building Is Purchased of $1,200,000 with a Balloon

question 28

Multiple Choice

A small office building is purchased of $1,200,000 with a balloon mortgage that is due at the end of year 10. Payments are based on a 25 year amortization period. If one point was charged, what annual amount can be deducted for tax purposes?

• A) $1,200
• B) $480
• C) $0
• D) $800

---

Definitions:

Kyphosis

A spinal disorder where there is an excessive outward curve of the spine, leading to a hunchback appearance.

Scoliosis

A medical condition characterized by a sideways curvature of the spine that occurs most often during the growth spurt just before puberty.

Spina Bifida

A birth defect where there is incomplete closing of the spine and membranes around the spinal cord during early pregnancy.

Herniated Disk

A condition where a disk in the spine slips or ruptures, potentially pressing on nearby nerves and causing pain or other symptoms.