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atroni [7]
4 years ago
12

A distribution of $15,000 is taken from a Coverdell Education Savings Account in a given year, but only $13,000 is used for the

beneficiary's qualified education expenses in that year. The tax consequence is:________.
A. $2,000 is taxable
B. $2,000 is taxable and a 10% penalty will be imposed
C. $15,000 is taxable
D. $15,000 is taxable and a 10% penalty will be imposed
Business
1 answer:
AysviL [449]4 years ago
5 0

Answer:

B) $2,000 is taxable and a 10% penalty will be imposed

Explanation:

Coverdell ESA distributions that are not used for qualifying educational expenses must be included in the gross income of the beneficiary and usually will be subject to a 10% tax penalty.

Coverdell ESA contributions are not taxed deductible, but the interest that they earn is not taxed. If the distributions are used to cover qualifying educational expenses, they are not taxed. But if they are not used properly, they must be included in the gross income of the beneficiary and will usually result in a 10% tax penalty (of the unused amount).

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Suppose you decide to deposit $25,000 into a savings account that pays a nominal rate of 15.60%, but interest is compounded dail
leonid [27]

Answer:

the amount after three months is $25,994

Explanation:

The computation of the amount after three months is as follows:

As we know that

A = P × (1 + rate of interest ÷ number of compounding period)^number of compounding period × time period

Where,

A = Accrued amount

P = Principal = $25,000

r = 15.60%

t = 3 ÷ 12 = 0.25

So,

A = $25,000 × (1 + 0.156 ÷ 365)^365 × 0.25

= $25,994

Hence, the amount after three months is $25,994

4 0
3 years ago
John wants to know how much he should pay for a particular used car. what should john do? he should ask his friend how much he p
SSSSS [86.1K]
What John should do is he should find reliable and relevant information; perhaps look up the information in the Kelley Blue Book.
He can't ask his friend because he may want to buy a different car, so his advice may not be helpful at all. A car dealer may want him to pay more than he should, so that wouldn't be useful either. His net worth will not help him reach his decision on how much he should pay for the particular car. So this Kelley Blue Book, which is used to compare prices for used cars is his best choice.
4 0
4 years ago
Read 2 more answers
Straight Cut beauty salon merges with Clean-Cut beauty salon. This is an example of
mestny [16]

Answer:

The answer is B. horizontal merger

Explanation:

Horizontal merger is a type of merger found between two competing firms operating in the same industry. Straight Cut beauty salon and Clean-Cut beauty salon are in the same industry performing the same or similar function.

Horizontal merger are done to increase the market share or enjoys economies of scale.

Straight Cut beauty salon and Clean-Cut beauty salon after the merger can introduce a wide range of services within the beauty salon

8 0
3 years ago
If you receive a ticket to a concert at no charge, what, if anything, is your opportunity cost of attending the concert?
spin [16.1K]

Answer:

The opportunity cost of attending the concert=$0

Explanation:

An opportunity cost is the total monetary loss that one has when they choose a given option. It can also be defined as the gain that one misses when the individual or business chooses one alternative over the other. Opportunity costs are not heavily considered in financial reports, however individuals or businesses who have the opportunity to choose from many alternatives at the same time need to consider the opportunity cost to make a more valuable decision in the long-run. Opportunity costs helps individuals and businesses to make better decisions on the options they have at their disposal.

The opportunity cost can be Determined using the following expression;

OC=FO-CO

where;

OC=opportunity cost

FO=return on best forgone option

CO=return on chosen option

Since in our case, the forgone option was not attending the concert, the cost would be=0

Also since the chosen option was the ticket at no charge, the cost would be=0

In our case;

OC=unknown

FO=0

CO=0

replacing;

OC=0-0=0

The opportunity cost of attending the concert=$0

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3 years ago
Example of a debt-funding source?
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Can i help you plese
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3 years ago
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