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You own a home and are thinking of doing some home repairs. This year there is a 30% tax credit on the cost of materials for adding insulation and for replacing windows and external doors. The maximum tax-credit is $3,000.
a. You decide to add insulation to your attic which costs $1,000 in materials, and you install it yourself. What is the dollar amount of the tax credit? (Round your answer to 2 decimal places.)
b. You are in a 28% tax bracket. How much does the home-repair tax credit reduce your tax liability? (Round your answer to 2 decimal places.)
c. How much would you have to spend on qualified improvement materials to maximize your $3,000 tax credit?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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