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earnstyle [38]
2 years ago
5

Ward and June are in the 32% tax bracket. A bond of Dell Computer Corporation with a face value of $10,000 is included in their

assets. The bond pays $1,000 interest annually. Ward and June gift the bond to their son, Wally (age 19), on January 1, 2019. Wally is in the 12% tax bracket. The 2019 net tax savings for the family unit of Ward, June, and Wally related to the transfer of the bond is:
Business
2 answers:
deff fn [24]2 years ago
8 0

Answer:

at least $200

Explanation:

Currently Ward and June are paying $1,000 x 32% = $320 in taxes for interest yielded Dell's bond.

Assuming Wally (their son) is actually making more than $12,200 per year (standard deduction), then he would pay only $1,000 x 12% = $120 in taxes for the same bond.

Since the gift's value ($10,000) is below the gift tax threshold ($15,000) they will not pay any additional taxes.

So their net savings are at least $320 - $120 = $200, and could be higher, up to $320 depending on Wally's gross income.

polet [3.4K]2 years ago
5 0

Answer:

Tax Savings = 200

Explanation:

If Ward and June carry the bond, tax would be:

⇒ Interests * tax rate

⇒ 1000 * 32% = 320

They gift bond to their son, Wally, whose tax would be:

⇒ Interests * tax rate

⇒ 1000 * 12% = 120

The tax savings related to the transfer of Bond is:

⇒ 320 - 120 = 200

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Answer:

C. is characteristic of an individual firm operating in a perfectly competitive market.

Explanation:

Demand is perfectly elastic if the coefficient of elasticity is infinite. It means thay consumers would only buy at one price. Once that price changes, demand falls to zero.

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If a seller decides to increase the price of his good in a perfect competition, demand falls to zero and reducing price woild lead to losses.

I hope my answer helps you

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Dima020 [189]

Answer:

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Explanation:

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5 0
3 years ago
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MA_775_DIABLO [31]

We will have to construct an amortization table as shown below to calculate the principal payment in the 4th payment

Month Payment Interest Principal Outstanding

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7 0
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7 0
3 years ago
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Natali [406]

Answer:

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