Bob and mary have been married for 25 years. they are both, Ask an Expert

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Bob and Mary have been married for 25 years. They are both college professors. Mary (50 years of age) makes $65,000 yearly and Bob (60 years of age) makes $75,000 yearly. Their oldest daughter is getting married. Mary and Bob would like to either

1) take out a second mortgage on their home (they can get an interest rate of 7 %) or

2) withdraw funds from their IRAs or

3) sell their rental property.

The cost of the wedding is $35,000. The equity in their home is $150,000; they have $80,000 in IRAs between the two of them and the basis of the rental property is $20,000. The rental property may be sold for $120,000. Mary and Bob want to know how they should finance the wedding and if tax implications will be a factor.

Research memo format (1) facts, (2) issues, (3) authority list, (4) conclusion, and (5) analysis.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9155846

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