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Dan purchased 1 exterior door for $500 and 3 energy-efficient windows for $450 apiece. assuming the items qualify for an energy-efficient home improvement tax credit, for what tax credit would he be eligible?

a. $510
b. $980
c. $1,560
d. $1,700

User KCK
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1 Answer

5 votes

Final answer:

Dan would be eligible for a tax credit of $510 if the items qualify for a 30% energy-efficient home improvement tax credit, based on the total cost of $1850 for his purchases. The correct option is a. $510

Step-by-step explanation:

Dan made two purchases for home improvements: an exterior door for $500 and 3 energy-efficient windows at $450 each. To find the total cost, we can calculate:

$500 for the door + (3 windows × $450 per window) = $500 + $1350 = $1850.

If these items qualify for an energy-efficient home improvement tax credit, and assuming the tax credit is 30% of the total cost based on the given reference chart, we calculate:

30% of $1850 = 0.30 × $1850 = $555.

The tax credit amount closest to $555 from the given options is $510.

However, it is important to note that actual tax credits are subject to specific government rules. This answer is based on the assumption of a 30% credit, but the exact percentage for a real-world scenario could vary and would need to be verified with current tax laws.

The correct option is a. $510

User Conrad Shultz
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