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3 years ago

Which group is most likely to utilize a tax advantages instrument such as an ira?

1 answer:

7 0

The small investor is the group that are able to day trade and most likely able to invest across different industries. They also utilize a tax advantages instrument such as IRA. This also a group that would face less red tape.

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Indigo Corporation had the following tax information.

Andrei [34K]

Answer:

Explanation:

Given that:

Indigo Corporation had the following tax information.

Year Taxable Income Tax Rate Taxes Paid

2015 $294,000 35% $102,900

2016 332,000 30% 99,600

2017 399,000 30% 119,700

In 2018, Indigo suffered a net operating loss of $487,000, which it elected to carry back. The 2018 enacted tax rate is 26%.

The objective is to prepare the Indigo's entry to record the effect of the loss carryback.

The Income Tax Refund Receivable = Taxable income(2018) × Tax rate(2018) + ( net operating loss - Taxable income(2018) ) × Tax rate(2018)

(332000 × 30%)+(476000-332000) × 30%

The Income Tax Refund Receivable = (332000 × 0.30)+(476000-332000) × 0.30

The Income Tax Refund Receivable = 99600 + 144000× 0.30

The Income Tax Refund Receivable = 99600 + 43200

The Income Tax Refund Receivable = 142800

Therefore, Indigo Corporation ENtry can be prepared as follows:

Account titles Debit Credit

Income Tax Refund Receivable 142800

Benefit Due to Loss Carryback 142800

To record the effect of the loss carryback

8 0

3 years ago

Sekelow Enterprises is a debt collection agency. It uses postcards to contact consumer debtors it is attempting to collect from

Olegator [25]

Answer:

The correct answer is: No, it is not legal.

Explanation:

The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits debt collectors from using abusive, unreasonable, or misleading money-recovery methods. That is meant to protect debtors from harassment or intimidation.

<em>Collectors cannot present themselves as law enforcement or government officials, they cannot call people at work or multiple times at home or during out hours, they cannot pass off papers as legal documents when they are not, they cannot arrest you, or lie in any way.</em>

Thus, <em>Sekelow has violated the FDCPA by sending debtors postcards requesting contact from their end.</em>

5 0

3 years ago

Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $420 million on January 1, 2021. The bonds mature

Fantom [35]

Answer:

Most Solutions, Inc.

Amounts related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021:

Operating activities:

Interest payments -$50.4 million

Financing activities:

Bonds issue $375,505,452

Explanation:

a) Data and Calculations:

January 1, 2021:

Face value of bonds issued = $420 million

Maturity period of bonds = 10 years (2031)

Coupon interest rate = 12%

Market yield = 14%

Payment of interest expense = semiannually (June 30 and December 31)

Debit Cash (price) 375,505,452

Debit Discount on bonds (difference) 44,494,548

Credit Bonds payable (face amount) 420,000,000

To record the bonds proceeds and discount.

Cash payments for Bonds Interests:

June 30 $25.2 million

December 31 $25.2 million

3 0

3 years ago

Assume that the interest rate on borrowings in India is 1 percent while the interest rate on bank deposits in a U.S. bank is 4 p

Mila [183]

Answer:

The speculative element of this carry trade is that its success is based upon the belief that there will be no adverse movement in exchange rates or interest rates.

Explanation:

A carry trade is when you borrow a currency that has a low interest rate, then use that money to buy another currency that pays a higher interest rate. You make money on the difference between the interest rates.

5 0

3 years ago

Suppose someone borrows $552,000 today to buy a house in Davis, CA. If the annual interest rate is 4%, with monthly compounding,

galina1969 [7]

Answer:

Monthly Repayment on Loan = $2634.06

Explanation:

given data

principal = $552,000

annual interest rate = 4% = 0.333% monthly

solution

for get here fair value monthly mortgage payment we consider here time period is 30 year = 360 months

so now we apply here Monthly Repayment on Loan formula that is

Monthly Repayment on Loan = principal × $\frac{r(1+r)^t}{(1+r)^t -1}$ .................1

put here value and we get

Monthly Repayment on Loan = 552000 × $\frac{r(1+0.333)^{360}}{(1+0.333)^{360} -1}$

Monthly Repayment on Loan = $2634.06

4 0

3 years ago