Answer:
Does she recognize income on the liquidation?
Yes, she must recognize the difference between the policy's surrender value and the total premiums paid = $42,042 - $33,852 = $8,190 must be recognized as income.
Does she recognize income on the liquidation?
No, she doesn't have to pay any taxes. Payments to terminally ill policy holders are treated in the same way as death benefits.
Answer:
a. Trade can make every person better off.
Explanation:
Trade generates a benefit for all parties trading. If a party do not fell like winning with trade, it will stop trading and the trade will not occur. It is important for each party to make sure the other wants to keep trading, so quantity and price will be based upon both parties agreement.
A person can trade for product she produces, for example a person who produce a certain fruit can buy the same fruit when is off-station in their side of the world with another producer.
It could also trade becasue is the raw material of a finished product and it need more input for his facilities.
If a person or a party who is trading thinks is worse than before the trade, then it will stop trading so, as long as there is trade, both parties are better off after the trade.
Answer:
4.83 times
Explanation:
The computation of the inventory turnover is shown below:
= Cost of goods sold ÷ average inventory
where,
Average inventory = Raw material inventory + work in progress inventory + finished goods inventory
= $740 + $320 + $1,010
= $2,070
And, the cost of good sold is $10,000
Now put these values to the above formula
So, the answer would be equal to
= $10,000 ÷ $2,070
= 4.83 times
<span>The accounting cost of running the smoothing stand for the summer is $13,135.90. To find this, we must first figure out which numbers given in the problem are relevant. Since we are dealing with accounting cost (and not economic cost), we know that we can ignore the opportunity cost ($2865 in foregone wages). We also can ignore the price of the smoothies since we do not need to compute revenue in order to determine accounting cost. Thus, the relevant numbers are $8130 for the lease, $2239 for insurance, the per unit cost of $2.3, and the total quantity of 1203. To find the accounting cost, we simply need to add our fixed costs and our variable costs. The fixed costs are given as $8130 and $2239. FC=8130+2239=$10369. Our variable cost, VC=2.3q, and we are told q=1203. Thus VC=2.3(1203)=$2766.90.
To find our Total accounting costs, simply add fixed costs plus variable costs. FC+VC=2766.90+10369=$13135.90.</span>
Answer:
It will increase the income inequality between the low income earners and the high income earners.
Explanation: Income inequality is a term used to describe the Difference or gap between income earners within a given economy. If the rate of increase of income is higher for the low income earners than for the high income earners it will help to reduce the inequality gaps between both classes. But when the rise is more for high income earners than for low income earners it will increase the inequality gaps between both classes.
