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

question 26

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 at closing,what annual amount can be deducted for tax purposes?

• A)$1,200
• B)$480
• C)$0
• D)$800

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