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krok68 [10]
4 years ago
13

illy fell off a bar stool and hurt his back. As a result, he was unable to work for three months. He sued the bar owner and coll

ected $100,000 for the physical injury and $50,000 for the loss of income. Billy also collected $15,000 from an income replacement insurance policy he purchased. Amber was away from work for three months following heart bypass surgery. Amber collected $30,000 under an income replacement policy purchased by her employer. Are the amounts received by Billy and Amber treated the same under the tax law? Explain.
Business
1 answer:
Arlecino [84]4 years ago
6 0

Answer:

No, the tax treatment will not be same.

All the amounts received by Billy, are during the course of business, and are related to the damages caused to business, and to him personally, and under tax these all amounts are tax free:

Amount received for personal injury of $100,000 is tax free as is related to expense of his personal recovery.

The amount of $50,000 and $15,000 though received from different sources but is for the same purpose of loss of income and destruction caused to business.

Whereas, amber is an employee, she is not the owner and therefore, all of the benefits received from her workplace are taxable.

As the policy was purchased by the employer and therefore, any amount received from such policy by amber will be taxable as a perquisite received from employer.

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8. What includes retail sales, housing starts, and truck and<br><br> auto sales
GREYUIT [131]

Answer:

monthly data series in a GDP

Explanation:

A GDP is defined as the actual domestically manufactured or produced products or the services provided in a financial year which describes or estimates the financial status or economic status of a country. GDP stands for Gross domestic product.

By analyzing the monthly data series of goods or services produced one can predict the real GDP of a country to be. One can use the monthly observations of the employment, unit auto as well as truck sales, sousing starts, retail sales, trade, automobile inventories, manufacturing, shipment of machinery and equipment, index of the industrial production, etc. to predict the GDP growth or get an idea of the GDP figures that are going to show the robust growth of the economy.

7 0
3 years ago
The system in which the country pegs its currency (e.g., Chinese yuan, Saudi Arabian riyal) at a fixed rate to a major currency
Assoli18 [71]

The system described above refers to the Fixed Exchange Rate System.

<h3>What is the fixed exchange rate system?</h3>

The fixed exchange rate system is a term that refers to the exchange regime of a monetary unit whose value is adjusted according to the value of another reference currency such as the Dollar or the Euro.

According to the above, the currencies of different countries gain or lose value according to their change with respect to the reference currencies.

This system has become widespread in the world with the aim of facilitating trade and investment between countries with the reference currencies.

Learn more about currency in: brainly.com/question/13684639

4 0
2 years ago
On its income statement for a recent year, American Airlines Group, Inc., the parent company of American Airlines, reported a ne
just olya [345]

Answer:

Find explanations below:

Explanation:

It must be understood that cash flow does not necessarily imply profit or loss.

A company may have been experiencing positive cash flows due selling mostly on a cash basis,  whereas the price charged is lower than cost of per unit,hence it would have high amount of cash, whereas the bottom-line is nothing to write home about.

The cash paid on retirement which is $411,000 would impact financing activities as an outflow.

The $3000 unamortized discount would be deducted from net income

3 0
4 years ago
A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. W
frosja888 [35]

Available Options Are:

a. Cost of Goods Sold

b. Net Profit Margin

c. None of these

d. Asset Turnover

Answer:

Option B. Net Profit Margin

Explanation:

The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.

Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.

Option D is incorrect because asset turnover formula is:

Asset Turnover = Sales / Total Assets

The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.

3 0
4 years ago
A country finds itself in the following situation: the government budget surplus is 2% of its GDP; private savings is 30% of GDP
DaniilM [7]

Answer:

The current account deficit will increase from 1% to 31% of GDP.

Explanation:

National saving and investment identity helps in understanding the determinants of trade and current account balance. The current account is in balance when the quantity demanded of financial capital is equal to the quantity supplied of financial capital.  

Here, the government saving or surplus and private savings are the supply of financial capital and investment indicates demand for financial capital.

The current account balance is

= Supply of capital - Demand for capital

= (30 + 2)% - 33%

= 32% - 33%

= -1%

So the current account is in deficit by 1% of GDP.  

If the private savings becomes zero, the current account balance will be

= Supply of capital - Demand for capital

= 2% - 33%

= -31%

The current account will be in deficit by 31%.

8 0
3 years ago
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