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1 year ago

The tax sheltered prgrma to encourage self employed people to acculumlate reitment funds is called?

Business

1 answer:

romanna [79]1 year ago

5 0

The tax sheltered prgrma to encourage self employed people to acculumlate reitment funds is called Keogh plan.

A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated organizations for retirement functions. A Keogh plan can be set up as both a defined-benefit plan or a defined-contribution plan, though maximum plans are set as the latter. A Keogh plan is a type of retirement investment account for self-employed people and business owners. Contributions to a Keogh plan are made pre-tax, while withdrawals in retirement face income tax. Positive sorts of Keogh plans may have higher contribution limits than other retirement debts.

A Keogh plan (is a tax-deferred pension account for self-employed people and employees of unincorporated businesses. Like IRAs, an worker can also put almost available investment into a Keogh plan, and the investment earnings develop on a tax-deferred basis.

Learn more about Keogh plan here:-

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Hart Technology must accrue a loss contingency. The amount of the loss can be reasonably estimated within a range of outcomes. O

Shtirlitz [24]

The amount of loss that should be recognized is the <u>minimum amount </u><u>of the </u><u>range. </u>

<u />

<h3>Recording a Contingent liability </h3>

It should only be recorded if the loss is probable and the amount to be incurred as liability can be reasonably estimated.
If neither of the above are possible, the loss would be recorded as a footnote.

US GAAP rules state however that if the loss is probable and the amount is in a range, the amount to be recorded as a contingent liability should be the minimum of the range.

In conclusion, they should recognize the minimum amount.

Find out more on contingent liabilities at brainly.com/question/17371330.

3 0

2 years ago

The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years,

shtirl [24]

Answer:

e) $37.05

Explanation:

Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.

So we discount the year 3 dividend using the dividend growth model formula

P = D (1+g)/r-g

r- rate of return, g = growth rate

Present value of the future dividends:

PV of Year 1 = 1.55(1.015)m × 1.12^(-1)

= 1.4047

PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)

= 1.27

PV of Year 3 (this will be done in two steps)

Step 1; PV (in yr 2) of year 3 dividend

= (1.55)(1.015)^2×(1.08)/(0.12-0.08)

=43.114

Step 2 : PV (in yr 2) of year 3 dividend

=43.114 × (1.12^(-2))

= 34.37

Best estimate of stock = 1.40 + 1.27 +34.37

= $37.05

Note

To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0

8 0

3 years ago

Abey Kuruvilla, of Parkside Plumbing, uses 1,220 of a certain spare part that costs $26 for each order, with an annual holdi

lina2011 [118]

Answer:

Total cost = Total ordering cost + Total holding cost

Total cost = DCo/Q + QH/2

Where D = Annual demand, Co = Ordering cost per order and H = holding cost per item per annum.

For 25 Order Size

Total cost = 1,220 x $26/25 + 25 x $25/2

Total cost = $1,268.80 + $312.50 = $1,581.30

For 40 Order Size

Total cost = 1,220 x $26/40 + 40 x $25/2

Total cost = $793 + $500 = $1,293.00

For 50 Order Size

Total cost = 1,220 x $26/50 + 50 x $25/2

Total cost = $634.40 + $625 = $1,259.40

For 60 Order Size

Total cost = 1,220 x $26/60 + 60 x $25/2

Total cost = $528.67 + $750 = $1,278.67

For 100 Order Size

Total cost = 1,220 x $26/100 + 100 x $25/2

Total cost = $317.20 + $1,250 = $1,567.20

b. The economic order quantity is 50 units because it reduces the total cost to $1,259.40

Explanation:

In this case, we need to determine the total costs based on different order sizes. Thus, economic order quantity is the order size that minimises the total cost.

4 0

3 years ago

Which of the following statements regarding Federal Reserve independence is incorrect?

hichkok12 [17]

Answer:

The correct answer is option D

D. The 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure

Explanation: Option D is incorrect regarding federal reserve independence.

8 0

3 years ago

Jeff is a member of Go Big Red, LLC. Jeff decides he does not like the color red, preferring instead the colors black and gold.

Vanyuwa [196]

Answer:

Option "D" is correct.

Explanation:

Option "D" is correct because When a person or member dissociates then the person loses the right to manage, losses the right to act, ceases from their duty of loyalty, ceases from the duty of care immediately if any event occurs after dissociation and the member has the right to find their interest. Therefore, from the given options it can be seen that the duty of care remains intact when only to that event that had occurred before the dissociation.

7 0

3 years ago