Assuming You Pay the Points and Borrow from the Mortgage

question 59

Multiple Choice

Assuming you pay the points and borrow from the mortgage lender at 6.00%,your monthly mortgage payment (with payments made at the end of the month) will be closest to:

• A)$1540
• B)$1530
• C)$1570
• D)$1500
• E)$1510

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Definitions:

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Goodwill

An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised.

NCI Adjustment

Adjustments made to the non-controlling interest in a subsidiary to reflect their proportionate share of the profits or losses.

Consolidation Worksheet

A tool used in preparing consolidated financial statements, recording the assets, liabilities, and operating results of a parent company and its subsidiaries.