Tax-deferred and tax-exempt accounts provides no up-front tax benefit but allows contributions and earnings to be withdrawn tax free during retirement
When deciding which sort of retirement account best suits your financial objectives, tax planning is a crucial consideration. Accounts that are tax-deferred and tax-exempt may enable you to pay as little tax as possible. Although the tax treatment of both retirement accounts varies, each can help you keep more of your money over the course of your lifetime.
You can take immediate tax deductions up to the full amount of your contribution in tax-deferred accounts. The money in your account continues to grow after that, tax-free. Your regular income tax rate will apply to any future withdrawals from the account.
Instead of offering tax reductions on donations, tax-exempt accounts offer future tax benefits. Taxes are not applied to retirement withdrawals. There is no immediate tax benefit because contributions are made with after-tax money, which means you fund the account with money you've already paid taxes on.
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Shoemaker Corporation Journal Entries
1. April 01, 2021
Dr Notes receivable 600,000
Cr Cash600,000
2. December 31,2021
Dr Interest receivable 42,075
Cr Interest revenue 42,075
3. April 01, 2019
Dr Cash 566,100
Cr Notes receivable 510,000
Cr Interest receivable 42,075
CrInterest revenue 14,025
Workings:
2.Interest revenue: $510,000 × 11% × 9/12 = $42,075
3.Interest revenue: $510,000 × 11% × 3/12 = $14,025
42,075+ 14,025=56,100
510,000+ 56,100= 566,100
Answer:
A
Explanation:
Amy's team with 100 shares of Delta Airlines, 80 shares of Peabody Energy, and 70
shares of Papa John's Pizza
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example of a case where a cost and revenue function do not have a break
even point includes, when the profit margin is larger than the losses
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