16. Brant purchased a home for $339,000. He made a 25% down payment and financed the
remaining amount. The intangible tax is 0.2%
Which of the following is the total amount of the intangible tax?
$67,800.00
$50,850.00
$678.00
$508.50

The correct answer is D. $ 508.50

Step-by-step explanation:

1. Let's review the information provided to us to answer the question correctly:

Price of the home purchased by Brant = $ 339,000

Down payment = 25%

Intangible tax = 0.2% = 0.002

2. Which of the following is the total amount of the intangible tax?

Let's recall the formula to calculate the intangible tax:

Intangible tax = (Price of the home - Down payment) * 0.002

Intangible tax = (339,000 - 0.25* 339,000) * 0.002

Intangible tax = (339,000 - 84,750 ) * 0.002

Intangible tax = 254,250 * 0.002

Intangible tax = $ 508.50

The correct answer is D. $ 508.50