Answer: $2,600
Explanation:
Because Andrew is married, the gift tax on him is split in half between him and his wife. This means that to each of his daughters, the gift tax will be on:
= 20,900 / 2
= $10,450
This amount is less than the gift exclusion limit of $15,000 so Andrew will not be charged taxes on the gifts to his daughters.
On the gift to Brianna's niece, Andrew's gift tax will be based on:
= 35,200 / 2
= $17,600
This is above the gift exclusion limit of $15,000 by:
= 17,600 - 15,000
= $2,600
<em>The above would therefore be Andrew's taxable gift amount. </em>
Answer:
Explanation:
The <em>price</em> of a <em>stock</em> can be modeled by the present value of the stream of future <em>dividends</em> discounted at a rate equal to the<em> return expected</em>.
The equation, when the dividends are expected to <em>grow</em> at a constant rate, less than the return rate is:
Where:
- Price₀ is the <em>current price</em>: $44.12
- Div₁ is the <em>dividend </em>to be paid a year from now: $0.46 × 1.145 = $0.53
- g is the expected constant <em>growth rate</em>: 14.5% = 0.145
- r is the <em>expected return</em>
Then, you can solve for r:
Answer:
c. progressive tax
Explanation:
Progressive tax can be regarded as one of the tax structure whereby the tax payer that receive higher incomes in the state pay a higher share of taxes from the income they made, which is different from those that receive Lower income. It is a tax system whereby when there is increase in tax rate then the taxable amount increases too. It should be noted that the tax structured where people with the same income pay the same percentage of their income in taxes is reffered to as progressive tax. wealth/property tax is one of the example of progressive tax.
Answer & Explanation:
Modiglani's Life cycle Hypothesis depicts spending & consumption pattern of people, in order to stabilise / or smoothen their consumprtion. The theory has following phases :
- Early (Non Working) Age, Low Income stage : Borrowings are done, to cover up for lack of income that yields desirable stable consumption level.
- Youth, Earning (Working) Age : Savings are done, through surplus of income level over desirable stable consumption level.
- Old, Post retirement (Non working age) : Dissavings are done, funds from previous savings are used to cover for lack of income that yields desirable stable consumption level.
Implication rate for entire economy saving rate : It implies that economy's savings rate is high, if more population comprises of middle aged working population.
