1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Many major designers are using metallic studs and spikes in their latest collections. What does this signify to a fashion foreca
Sati [7]

Answer:

increased production of studs and spikes around the world

Explanation:

The production of hese new designs have a direct correlation with the production of studs and spikes around the world

7 0
2 years ago
Read 2 more answers
PLEASE HELP ASAP!!! (There are 4 Questions)
Ivanshal [37]

1. A guaranteed loan is a loan that a third party guarantees – or assumes the debt obligation for – in the event that the borrower defaults. If a co-signer is on the loan, if the main party defaults the co-signer becomes responsible for the loan.

2. I could ask family members as a last resort for financing.

3. The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000. For 2018 and 2019, the annual exclusion is $15,000.

4. line of credit loan will help protect a business in case of emergency. It is an open loan that the business can draw from when it needs more money, and pay it back. Unlike installment loans, once the principal is paid the line stays open for use in the future without the need to reapply each time.

3 0
3 years ago
Read 2 more answers
The last five annual dividends for MysteryCorp have been: $1.25, $1.38, $1.49, $1.60, and $1.69. Next year's dividend is expecte
Nataliya [291]

Answer:

Re = 8.79%

Explanation:

annual growth rates:

($1.38 - $1.25) / $1.25 = 0.104

($1.49 - $1.38) / $1.38 = 0.078

($1.60 - $1.49) / $1.49 = 0.074

($1.69 - $1.60) / $1.60 = 0.056

geometric growth rate = ⁴√(1.104 x 1.078 x 1.074 x 1.056) - 1 = ⁴√1.34976 - 1 = 1.0779 - 1 = 0.0779 = 7.79%

P₀ = Div₁ / (Re - g)

$199 = $2 / (Re - 0.0779)

Re - 0.0779 = $2 / $199 = 0.01

Re = 0.01 + 0.0779 = 0.0879 = 8.79%

7 0
2 years ago
Vino Tinto Inc. sells a variety of wines but specializes in selling premium red wine. If the company enters into an agreement wi
Ne4ueva [31]

If the company enters into an agreement with a winery in Spain to purchase all the red wine the winery produces, this would be a: output contract

<h3><u>Explanation:</u></h3>

An output contract is an arbitration where one party consents to acquire the complete product that the other party accumulates. Thus, the consumer will obtain all the 'output' the trader executes.

Output contracts can be valuable to consumers when there is conjecture about market supply or demand for a distinct good. Output contracts attend the sale of goods, these sorts of contracts are directed by the Uniform Commercial Code. In the fact of output contracts, the U.C.C. claims that both parties to the contract act in real faith.

7 0
2 years ago
Anheuser-Busch/InBev Company, Inc., has been given the exclusive right to the name Budweiser and is legally protected from other
vichka [17]

Answer:

trademark

Explanation:

A trademark is a property which is intellectually a sign or a design which helps in the recognition of the product. The design or sign which particularly defines and helps in the identification of a product is said to be a trademark of a product. A trademark can be found on the location of the packaging, label or the product. Legally, it is recognized as intellectual property.

3 0
3 years ago
Other questions:
  • Which type of statement is used to communicate ones feelings in a non confrontational manner?
    5·1 answer
  • Tishian's funeral home has been in business for over 80 years. throughout its history, the firm has been a family-run operation.
    8·1 answer
  • On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, ba
    6·1 answer
  • How many copies of "The 7 Habits of Highly Effective Teens" has Sean Covey sold?
    15·1 answer
  • . Resource utilization charts based on each activity’s latest start time are said to be based on an ____ schedule. a. as-soon-as
    9·1 answer
  • Auto insurance is needed primarily because of __________. (points : 2)
    11·1 answer
  • how does being mindful of your strengths, skills, weaknesses, and potential challenges or obstacles impact your personal, academ
    9·1 answer
  • f the company estimates that it will need 55,480 pounds of raw material to satisfy production needs in March, then the raw mater
    8·1 answer
  • Product differentiation that makes the product better for some consumers and worse for others is A) always welfare decreasing. B
    15·1 answer
  • If a firm's marginal tax rate is increased, this would, other things held constant, lower the cost of debt used to calculate its
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!