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earnstyle [38]
3 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]3 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]3 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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B Deliberate

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There are different types of plans. Manager can make short term or long term plans which are based on time. Strategic plans are about methodology or procedure. Deliberate is not a type of planning.

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3 years ago
When recording depreciation, which of the following statements is true?
professor190 [17]

Answer:

D. None of the above are true.

Explanation:

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7 0
3 years ago
Make or BuyBlasingham Company is currently manufacturing Part Q108, producing 35,000 units annually. The part is used in the pro
muminat

Explanation:

The computation is shown below:

Particulars                   Cost Per unit in ($)

Direct Materials           $6

Direct Labor                  $2  

Variable Overhead  $1.5

Fixed Cost  ($77000 ÷ 35,000 units) $2.2

Total Cost per unit                                 $11.7

So,

1. He will buy the product as it is a saving of $0.7 ($11.7 - $11)

2) The most price willing to pay is $11.7

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Readme [11.4K]

Answer:

1-True

2-False

3-True

4-False

5-True

6-True

Explanation:

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