1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fynjy0 [20]
4 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]4 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.

You might be interested in
The annual commissions per salesperson employed by a manufacturer of light machinery averaged $40,000 with a standard deviation
Leni [432]

Answer:

A

Explanation:

From the given information;

The required probability needed to carry out is P(32000<X<42000);

Given that:

mean \mu = 40000

standard deviation \sigma = 5000

Using the standard normal distribution;

P(32000

P(32000

P(32000

Here, the region of the area lies between -1.60 and 0.40

∴

P(320000 < X < 40000) = P(Z<0.40) - P(Z< -0.40)

From Z tables;

P(320000 < X < 40000) =  0.6554 -0.0548

P(320000 < X < 40000) = 0.6006

P(320000 < X < 40000) = 60.06%

5 0
3 years ago
A firm has common stock of $100, paid-in surplus of $370, total liabilities of $460, current assets of $490, and fixed assets of
Andre45 [30]
Hi there

shareholders' equity=
(fixed assets+current assets)-liabilities

shareholders' equity=(700+490)−460
=730...answer

(Note that the amount of retained earnings is not provided so you must use total assets minus total liabilities to derive the correct answer)
8 0
3 years ago
In terms of premium cost, the most expensive type of insurance is _______ insurance.
emmainna [20.7K]
D. 20 year endowment
3 0
3 years ago
The amount of the promissory note plus the interest earned on the due date is called the
yuradex [85]

Answer:

The amount of the promissory note plus the interest earned on the due date is called the maturity value.

Explanation:

Maturity value is the amount that has to be paid to an investor at the end of the debt's intrument period. The amount to be paid includes the interest earned during the  period of the investment and the amount of money invested.

3 0
4 years ago
Omega Instruments has budgeted $300,000 per year to pay for certain ceramic parts over the next 5 years. If the company expects
bija089 [108]

Answer:

281,281.28

Explanation:

expected cost  300,000 + 10,000 = 310,000

with an inerest rate of 10%

discount value equals to 281,281.28

4 0
3 years ago
Other questions:
  • A firm is currently producing 100 widgets using 4 units of labor and 12 units of capital. The firm's production function exhibit
    7·1 answer
  • The inflation tax select one:
    11·1 answer
  • This occurs when one party repeatedly holds out for a better deal.
    12·1 answer
  • What are the most important elements of Toyota's organizational structure
    12·2 answers
  • PB13.
    6·1 answer
  • The S&amp;R index spot price is 1100, the risk-free rate is 5%, and the continuous dividend yield on the index is 2%. a. Suppose
    10·1 answer
  • The bank statement for Mat Co. revealed a balance of $900, and the checkbook balance showed $1,420. Checks outstanding totaled $
    6·1 answer
  • Carmel was paying premiums for health insurance, but when he had surgery, he was surprised to learn he still owed thousands of d
    8·1 answer
  • In a perfectly competitive market, all producers sell ___ goods or services. Additionally, there are ___ buyers and sellers. Bec
    11·1 answer
  • Shareholders have only limited power to make management decisions beyond their ability to elect and remove directors.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!