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1 year ago

A self-employed individual makes $200,000 per year. to which type of retirement plan can the maximum contribution be made?

1 answer:

5 0

Option C. The type of retirement plan that the individual would have to make the maximum contribution is the sep ira.

<h3>What is the retirement plan?</h3>

This is the term that is sued to refer to the plan that is done in such a way that it has to help a person to take care of their post retirement. This is done through the saving of money in such a way that it would help to take care of the periods that they have become old and no longer working.

Hence the SEP IRA is also called the simplified employee pension plan. Therefore the type of retirement plan that the individual would have to make the maximum contribution is the sep ira.

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The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 8,000 batte

grin007 [14]

Answer and Explanation:

The computation is shown below:-

a) raw-materials is

= (8,000 - 7,600) × $80

= $32,000

b) work in process 7,500 batteries x $80 x 10%

= $60,000

c) Finished goods = 7,500 batteries × $80 × 90% × 30%

= $162,000

d) cost of goods sold 7,500 batteries x $80 × 90% × 70%

= $378,000

e) selling expense is

= 100 × $80

= $8,000

Total 8,000 batteries purchased × $10 per battery is

$80,000

2. Specification is shown below:

a) rawmaterials stock $32,000 Balance Sheet

b) work inprocess $60,000 BalanceSheet

c) Finishedgoods stock $162,000 BalanceSheet

d) cost of goodssold $378,000 IncomeStatement

e) sellingexpense $8,000 IncomeStatement

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3 years ago

Cash flows It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, ty

svetlana [45]

Answer:

TOTAL CASH INFLOW $4,950

TOTAL CASH OUTFLOW $4,357

B. $593

C. First is for Jane to bring down her outflow

Secondly is for Jane to either make use of a credit card or request for loan.

D. Jane should make use of the short-term investment rates of 5 percent which was offered by the bank and secondly in a situation where she think or felt that the surplus cannot be enough for her to invest with Jane should go ahead and save the money.

Explanation:

a. Calculation to Determine Jane’s total cash inflows and cash outflows

TOTAL CASH INFLOW

Interest received $ 450

Salary4,500

TOTAL CASH INFLOW $4,950

TOTAL CASH OUTFLOW

Clothes-$1,000

Dining out-500

Groceries-800

Auto payment-355

Utilities-280

Mortgage-1,200

Gas-222

TOTAL CASH OUTFLOW $4,357

Therefore total cash inflow will be $4, 950 while total cash Outflow will be $4,357

b. Calculation to Determine the net cash flowfor the month of August using this formula

The Net cash flow =Total cash inflow - Total cash outflow

Let plug in the formula

Net cash flow =$4,950-$4,357

Net cash flow = $593

Therefore the Net cash flow will be $593

c. In a situation where there is a shortage, the few options that will be open to Jane will be:

First is for Jane to bring down her outflow

Second is for Jane to either make use of a credit card or request for loan.

d. In a situation where there is a surplus, what should be a prudent strategy for Jane is to follow:

Jane should make use of the short-term investment rates of 5 percent which was offered by the bank and secondly in a situation where she think or felt that the surplus cannot be enough for her to invest with Jane should go ahead and save the money.

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3 years ago

As the sonic brand grew, troy smith formed a business relationship with charlie pappe. This form of business ownership was a

nadezda [96]

Answer: Partnership

A partnership is a from of business ownership who come together with mutual consent in order to manage the business and share its profits.

The terms and conditions of this agreement and the quantum of profit for each partner is clearly stated in a document called the partnership agreement.

All the partners who actively manage the business and share the profits are called General Partners. The general partners are jointly and severally liable for the debts incurred by the partnership.

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3 years ago

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What is the expected value when a $1 lottery ticket is bought in which the purchaser wins exactly $10 million if the ticket cont

Nadusha1986 [10]

We expect to lose $0.37 per lottery ticket

<u>Explanation:</u>

six winning numbers from = { 1, 2, 3, ....., 50}

So, the probability of winning:

$P(win) = \frac{ no of favorable outcomes}{no of possible outcomes}$

$P(win) = \frac{1}{^5^0C_6} \\\\P (win) = \frac{6! X (50 - 6)!}{50!} \\\\P(win) = \frac{6! X 44!}{50!} \\\\P(win) = \frac{1}{15,890,700}$

The probability of losing would be:

P(loss) = 1 - P(win)

$P(loss) = 1 - \frac{1}{15,890,700} \\\\P(loss) = \frac{15,890,699}{15,890,700}$

According to the question,

When we win, then we gain $10 million and lose the cost of the lottery ticket.

So,

$10,000,000 - 1 = $9,999,999

When we lose, then we lose the cost of the lottery ticket = $1

The expected value is the sum of the product of each possibility x with its probability P(x):

E(x) = ∑ xP(x)

$= 9,999,999 X \frac{1}{15,890,700} + ( -1 ) X \frac{15,890,699}{15,890,700} \\\\=- \frac{5,890,700}{15,890,700} \\\\= - \frac{58,907}{158,907} \\\\= - 0.37$

Thus, we expect to lose $0.37 per lottery ticket

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3 years ago

How is a credit union different from a retail bank

a_sh-v [17]

Credit unions are not-for-profit financial cooperatives. Whose earnings are paid back to members in the form of higher saving rates and lower loan rates.Banks are for profit businesses with earning paid to stockholders only.

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3 years ago

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