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Alex
3 years ago
12

A client has purchased a nonqualified variable annuity from a commercial insurance company. Before the contract is annuitized, y

our client, currently age 60, withdraws some funds for personal purposes. What is the taxable consequence of this withdrawal to your client?
Business
1 answer:
ruslelena [56]3 years ago
6 0

Answer:

Ordinary income taxation on the earnings withdrawn until reaching the owner's cost basis.

Explanation:

Ordinary income refers to income that is taxed according to the regular U.S. tax brackets and includes many types of income. This includes wages, salaries, tips, and commissions, but excludes long-term capital gains and qualified dividends, both of which are taxed at more favorable rates

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Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations.
Lena [83]

Answer:

1. $27,188

2. $48,000

3. 212,000

Explanation:

Computation for the charitable contribution deduction

1. Based on the information given the calculation will be :The amount of the property's basis including 50% of the appreciation on the property

Charitable contribution deduction = [$43,500 + ($54,375- $43,500) * 50%]

Charitable contribution deduction = [$43,500 + ($54,375- $43,500) * 50%

Charitable contribution deduction =$43,500+$10,875*50%

Charitable contribution deduction =$27,188

b.Based on the information given what will be the

charitable contribution deduction is the fair market value on the date of the contribution of the amount of $48,000 reason been that it is a capital gain property Contribution.

c. Based on the information given what will be the charitable contribution deduction is the worth of the donated sculpture held as an investment of the amount of $212,000 reason been that it is a capital gain property Contribution.

8 0
3 years ago
Remember, a bond’s coupon rate partially determines the interest-based return that a bond (might/will)...........pay, and a bond
prohojiy [21]

Answer:

<u>will</u>, <u>would like </u>

Explanation:

Bond refers to debt instruments whereby corporates raise long term finance agreeing to pay in return, the holders of such securities (bond holders), timely coupon payments and principal repayment at the end of the term.

The fixed rate of interest bondholders receive is referred to as the coupon rate. The rate of interest received by holders of similar bonds in the market refers to an investors expected rate of return also denoted as YTM i.e yield to maturity.

Yield to maturity refers to the rate of return other investors are earning on similarly priced bonds in the market. Higher the yield to maturity, lower will be the present value of bond.

When coupon rate of payment is higher than YTM, such bonds are priced at a premium.

3 0
4 years ago
What was the growth rate of per capita income in india on the eve of independence.
Orlov [11]

The growth rate in India on the eve of independence was 0.5% per annum.

<h3>What is independence?</h3>

Independence refers to the act of getting free from controlling of the dominating or ruling parties.

On the eve of independence, the economy was sluggish, and agriculture was the main activity that sparked growth. The colonial authorities made no serious attempt to assess India's national and per capita GDP.

Therefore, it can be concluded that 0.5% p.a. was the growth of the India at the time of independence.

Learn more about Independence here:

brainly.com/question/27765350

#SPJ4

4 0
2 years ago
To get a complete picture of your target market, you must do Question 2 options: door-to-door surveys. primary research. seconda
WITCHER [35]
Primary research To get a complete picture of your target market,
3 0
3 years ago
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Which companies entry into the Chinese market resulted in their brand being translated as 'bite the wax tadpole
dlinn [17]
Coca Cola? I might be wrong but I'm pretty sure
3 0
4 years ago
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