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Fynjy0 [20]
3 years ago
11

Armando, a manager for Petros Pizza Pies (PPP), dies in an accident on July 12. PPP pays his wife, Penelope, $600 in salary that

had accrued before Armando died. Armando was covered by a $90,000 group term life insurance policy, which is also paid to Penelope. In addition, the board of directors of PPP authorizes payment of $6,000 to Penelope and $4,000 to their child in recognition of Armando's years of loyal service and contributions to the success of the company. What are the tax consequences of the payments to Penelope and her child?
Business
1 answer:
stepan [7]3 years ago
8 0

Answer:

Explanation:

Ms. P receives $6,000 from Company P due to her husband A's loyal service and She receives $600 that her husband earned prior to his death. Hence, Ms P earns a total of $6,600 ($6000 + $600) gross income.

The amount of $90,000 receive from the life insurance proceeds are excluded from the gross income.

Ms P's daughter receives $4,000 from company P. It should be included in her daughter income.

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Answer:

income - expenses

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net income is an entity's income minus all the expenses, taxes etc and net worth is the total wealth own by individual minus expenses.

3 0
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Which of the following is a potential danger of offering common stock to investors?
murzikaleks [220]

Answer :It doesn't allow the entrepreneur to raise enough money. -A.

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Abigail is a manager at her company. The company just launched an initiative to improve its corporate citizenship practices. Abi
Fofino [41]

Answer:

The correct option is A,safeguarding shareholders' interests

Explanation:

Showing integrity and ethical behavior comes under a company portraying itself as a good corporate citizen in order to endear itself to stakeholders, however the responsibility of safeguarding shareholders' interests is the fundamental and not necessarily falls under ethical behavior as the primary reason for the creation of the business in the first place is to enhance maximization of shareholders' wealth

Disclosure and transparency as well as vigilance of the board of directors are both required in order to ensure the wealth of owners are enhanced.

6 0
2 years ago
The managers at Fazer Technologies Inc. prepared a report on the profits earned and the losses incurred by the company over the
HACTEHA [7]

Answer:

<u>external report</u>

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Remember, external reports are usually given to investors to know the financial condition of the company. Thus, the shareholders would need the report in order evaluate the financial condition of Fazer Technologies Inc.

3 0
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Suppose that the vast majority of 3/4 ton pick-up trucks in America are produced by companies A, B, C, and D and that they all s
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Answer:

b. A very large increase in sales. A very rapid and similar response by the other large firms in the industry.

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As for the information there is no clear agreement to sell the goods at the same price, like that of other industries.

Further since all the companies follow the same price, there is no such differentiation.

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