Exercise 10-25 (Algorithmic) (LO. 2) The Wilmoths plan to purchase a house and would like to determine the after-tax cost of financing its purchase. Given their projected taxable income, the Wilmoths are in the 24% Federal income tax bracket and the 8% state income tax bracket (ie., an aggregate marginal tax bracket of 32%). Assume that the Wilmoths will benefit from itemizing their deductions for both Federal and state tax purposes. The total cash outlay during the first year of ownership will be $29,600 ($2,960 principal payments, $26,640 qualified residence interest payments). If required, round your interim calculation to nearest dollar. As a result, the initial year after-tax cost of financing the purchase of the home will be $ 0 X. Feedback Check My Work Because the Federal tax law provides that qualified residence interest and real estate taxes are deductible by individual taxpayers, the after-tax cost of a home purchase will be reduced by the tax savings associated with these itemized tax deductions