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
mezya [45]
3 years ago
10

Nick purchased a $100,000 participating whole-life insurance policy on his life. To date, he has paid $50,000 in total premiumsa

nd received $10,000 in dividends. The policy currently has a net cash value of $15,000 and is subject to a $30,000 outstanding loan. If Nick decides to surrender the policy, he would realize a gain of:
A. $0
B. $5,000
C. $10,000
D. 15,000
Business
1 answer:
gogolik [260]3 years ago
6 0

Answer:

correct option is A. $0

Explanation:

given data

purchased = $100,000

paid =  $50,000

dividend received = $10,000  

net cash value = $15,000

outstanding loan = $30,000

solution

as there will be  no gain on surrender of a whole life insurance policy.

as we get taxable income gain that is

taxable income gain = cash value + outstanding loan + dividends

- premiums   ..................1

taxable income gain = 15,000  + 30,000 + 10,000  - 50000

taxable income gain = -5000

so gain is zero

so correct option is A. $0

You might be interested in
What is the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantag
finlep [7]

The ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position  is called competitive rivalry.

Aggressive competition is the continued set of aggressive moves and competitive responses that occur amongst corporations as they maneuver for an nice market position. competitors are firms running in the equal market, supplying similar merchandise, and concentrated on similar customers.

Creates a positive picture of your emblem or product: Positioning in advertising lets in you to influence how others view your product. in case you create materials that show the product in a effective light, customers may partner you this, that may result in extra purchases.

Learn more about advantageous market position here:-brainly.com/question/15530466

#SPJ4

5 0
2 years ago
McKinney Corporation had beginning retained earnings of $2,242,000 and ending retained earnings of $2,499,000. During the year t
miv72 [106K]

Answer:

Net income for the year = $257,000

Explanation:

Retained earnings for the year= Net income - dividends paid.

Since no dividends were paid, retained earnings for the year = net income for the year. At the end of each accounting period, retained earnings are reported on the balance sheet, and the retained profits for the year are added to the beginning balance of retained earnings, to give a cumulative ending balance of  $2,499,000.

therefore retained earnings for the year = ending retained earnings balance  - beginning retained earnings balance = $2,499,000.-$2,242,000= $257,000.

Net income for the year is  thus =  $257,000 since no dividends were paid.

6 0
3 years ago
What is a bond bubble and how did it help inflate the stock market?
victus00 [196]
The daily chart for the Dow shows how fast the stock market can decline when the 'inflating parabolic bubble' pops.
6 0
3 years ago
Isaiah is a Financial Quantitative Analyst for a major stock investment company. What does Isaiah do on a daily basis as a part
Soloha48 [4]

Answer:

He researches, analyzes, and summarizes information about fraud.

4 0
3 years ago
Well, I don't hate anyone cuz there is no reason to hate anybody plus Hate is a strong word. I would use strongly dislike. But I
Reil [10]

Answer:

THANK YOU ,SAME TO YOU

6 0
2 years ago
Other questions:
  • In order to sell a product at a profit, the product must be priced higher than the total cost to build the unit, plus period exp
    12·1 answer
  • The chi-square goodness-of-fit test for multinomial probabilities with 5 categories has _____ degrees of freedom.
    7·1 answer
  • Income is generated through the ______ of goods and services. In the United States, ________ of all income takes the form of wag
    5·1 answer
  • Mervon Company has two operating departments: Mixing and Bottling. Mixing has 350 employees and Bottling has 350 employees. Indi
    11·1 answer
  • Find the product of 28 and 97.
    15·2 answers
  • Question 62
    9·2 answers
  • The role of the 12 Federal Reserve banks is to:
    5·2 answers
  • Taxes that include Social Security and Medicare withholdings.
    6·1 answer
  • Which of these is an example of a natural monopoly? electricity service grocery delivery retail store security driveway concrete
    7·1 answer
  • if an investor with no other positions buys 2 dwq jun 45 calls at 3, and he exercises the calls when the stock is trading at 47.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!