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Montano1993 [528]
3 years ago
9

"A customer contributed $50,000 to a variable annuity contract. The account value has grown over the years and the NAV is now $7

0,000. The customer is now age 60, and takes a lump-sum distribution of $25,000 to pay for expenses. Which statement is TRUE?"
Business
1 answer:
makvit [3.9K]3 years ago
4 0

Answer: $20,000 of the distribution is taxable and $5,000 is not taxable

Explanation:

The options to the question are:

A. The entire $25,000 distribution is not taxable

B. $5,000 of the distribution is taxable and $20,000 is not taxable

C. $20,000 of the distribution is taxable and $5,000 is not taxable

D. The entire $25,000 distribution is taxable.

From the question, we are told that a customer contributed $50,000 to a variable annuity contract and that the account value has grown over the years and the NAV is now $70,000.

We are further told that the customer is now age 60, and takes a lump-sum distribution of $25,000 to pay for expenses. This indicates that there will be tax deductible in the amount of :

= $70000 - $50000 = $20,000. It should also be noted that $5000 won't be taxed.

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Since 2009, job growth in the Internet-media sector has increased by what percentage?
navik [9.2K]

Answer:

The answer is 31%

Explanation:

Hope you have a great day

5 0
2 years ago
If a consumer refuses to provide required suitability information, what must the producer/insurer do
V125BC [204]

Obtain a customer signed statement acknowledging that an annuity transaction is not recommended if a customer decides to enter into an annuity transaction that is not based on the insurance producer's or insurer's recommendation.

<h3>Who is responsible for verifying your suitability?</h3>

The insurer or third party delegate authorized pursuant to section 224.

6(c) of Regulation 187 conducts a suitability review prior to the issuance of an insurance product or the effectuation of a sales transaction; and.

The insurer has procedures designed to prevent financial exploitation and abuse.

<h3>What factors are important considerations when determining suitability of an annuity sale?</h3>

Suitability Information Gathered by an Insurer

  • Age.
  • Annual income.
  • Financial situation and needs, including the financial resources you're using to fund the annuity.
  • Financial experience.
  • Financial goals and objectives.
  • Intended use of the annuity.
  • Financial time horizon.

Learn more about insurance here:

<h3>brainly.com/question/15171641</h3><h3 /><h3>#SPJ4</h3>
7 0
1 year ago
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The
Ugo [173]

Answer:

$2,880

Explanation:

Given that,

Total machine-hours = 30,300

Total fixed manufacturing overhead cost = $ 575,700

Variable manufacturing overhead per machine-hour = $ 4.00

For Job T687:

Number of units in the job = 10

Total machine-hours = 30

Direct materials = $730

Direct labor cost = $1,460

Total variable overhead estimated:

= Variable manufacturing overhead per machine-hour × Total machine-hours

= $4 × 30,300

= $121,200

Total overhead estimated:

= Total variable overhead estimated + Total fixed overhead estimated

= $121,200 + $575,700

= $696,900

Predetermined overhead rate:

= Total overhead estimated ÷ Total machine-hours

= $696,900 ÷  30,300

= $23 per machine hour

Total overhead applied:

= predetermined overhead rate × Total machine hours for Job T687

= $23 × 30

= $690

Total job cost:

= Direct material + Direct labor + Total overhead

= $730 + $1,460 + $690

= $2,880

5 0
3 years ago
Lauren's salary decreases from $ 37,000 to $ 30,000 . She decides to reduce the number of outfits she purchases each year from 2
nikklg [1K]

Answer:

E=-4.0746

Explanation:

Using the midpoint method, Lauren's income elasticity of demand for new outfits is determined by the change in income multiplied by the average number of outfits, divided by the change in the number of outfits multiplied by the average income:

E=\frac{\Delta I*O_{avg}}{\Delta O*I_{avg}}\\E=\frac{(37,000-30,000)*\frac{20+19}{2}}{(19-20)*\frac{37,000+30,000}{2}}\\E=-4.0746

Her income elasticity of demand for new outfits is -4.0746.

8 0
3 years ago
Assume that we are in the MM world. Health and Wealth Company is financed entirely by common stock that is priced to offer a 12
Levart [38]

Answer:

13%

Explanation:

the new cost of equity = old cost of equity + [(debt / equity) x (old cost of equity - cost of debt)]

the new cost of equity = 12%+ [(20 / 80) x (12% - 8%)] = 12% + 1% = 13%

Since we are in the MM world, taxes do not exist, therefore they are not included in the equation.

7 0
3 years ago
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