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4 years ago

Difference between a will and a living trust

Business

1 answer:

aev [14]4 years ago

7 0

Answer:

A will gets into effect after a person dies. trust gets into effect as soon as it is created. The will covers all the property under the individual's name. Trust covers property which has been transferred in the name of the trust.

Explanation:

A will directs who will receive his property after an individual's death. It also appoints a representative to carry out the wishes of the deceased. A trust on the other hand can divide the property before, after or at death.

A will is a document through which a person expresses his wishes about how his property is to be distributed, it can also contain details regarding funeral.

A trust is an arrangement through which property of an individual is held by other individuals or institution.

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Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department fol

Olin [163]

Answer:

48,000 units ; 46,000 units ; 46,000 units

Explanation:

The computation of the equivalent units is shown below:

For Material

= Units transferred out × completion percentage + ending work in process units × completion percentage

= 42,000 × 100% + 8,000 × 75%

= 42,000 units + 6,000 units

= 48,000 units

For Labor

= Units transferred out × completion percentage + ending work in process units × completion percentage

= 42,000 × 100% + 8,000 × 50%

= 42,000 units + 4,000 units

= 46,000 units

For Overhead

= Units transferred out × completion percentage + ending work in process units × completion percentage

= 42,000 × 100% + 8,000 × 50%

= 42,000 units + 4,000 units

= 46,000 units

3 0

4 years ago

Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,450 monthly. The contract currently sells for $114

romanna [79]

Answer:

a. 1.27%

b. 15.24%

c. 16.35%

Explanation:

a. What is the monthly return on this investment vehicle?

The formula for the value of a Perpetuity is;

Value = Payment/ rate

Rate = Payment/ Value

Rate = 1,450/114,000

= 0.0127

= 1.27%

b. What is the APR?

APR is the annual rate. The above figure is the monthly rate.

APR = Monthly rate * 12

= 1.27 * 12

= 15.24%

c. What is the effective annual return?

Effective annual return = [1 + (APR/n)]^n – 1

n is the number of compounding periods which is 12 here for monthly compounding.

= [1 + (15.24%/12)]^12– 1

= 16.35%

5 0

3 years ago

If a journal entry and posting for the use of one month of rent from the prepaid rent account during the year is accidently omit

tensa zangetsu [6.8K]

Answer:

Expenses will be understated, hence, Net Income will be overstated.

Rent prepaid will be overstated, hence, current assets will be overstated.

Explanation:

Ordinarily, rent prepaid is meant to be credited every month to the tune of the the value that has been consumed and then added to period expenses to reduce net income.

In the statement of Financial Position, the same amount that has been consumed should be used to reduce balance in rent prepaid account, otherwise, current assets will be overstated if no adjustment is made.

4 0

4 years ago

If Ted wants to buy a house and believes that interest rates will rise, he should __________. apply for a fixed-rate mortgage ap

MaRussiya [10]

Apply for a fixed rate mortgage

5 0

3 years ago

Accounts receivable turnover and days’ sales in receivables For two recent years, Robinhood Company reported the following: 20Y9

deff fn [24]

Answer:

The workings are done below;

Explanation:

20Y8 20Y9

a.Accounts Receivable Turnover *11.8 **13.4

(Net Sales/Average Receivables)

*(6,726,000/((600,000+540,000)/2)

**(7,906,000/((580,000+600,000)/2)

b. Days' sales in receivables ***30.9 ****27

(Average Receivables/Net Sales)*365

***(((600,000+540,000)/2)/6,726,000)*365

****(((580,000+600,000)/2)/7,906,000)*365

c. The 20Y9 accounts receivable turnover ratio and days' sales in receivables are better as compared to 20Y8 because it takes 27days in 20Y9 as compared to 30 days in 20Y8.Both ratios of 20Y9 are lower than 20Y8

3 0

3 years ago