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Ilia_Sergeevich [38]
3 years ago
12

A life insurance policy that fails the 7-pay test is considered by the irs to be a modified endowment contract. this type of pol

icy will
Business
2 answers:
alukav5142 [94]3 years ago
6 0

<span>This type of policy will change living benefits to taxable as ordinary income, in contrast to non-taxable living benefits that are found in life insurance.

A modified endowment contract</span> (MEC) refers to a tax requirement of a life insurance policy where the policy has been financed with more money than the money which is accepted under federal laws.

Vlada [557]3 years ago
6 0
<span>A Modified endowment contract, MEC, allows individuals to put large sums of money into a cash value policy which allows the cash to grow under a tax deferment until the insured person dies, then the death benefit will be paid with no income taxes.</span>
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They want to make a profit of $55,498 Unit Variable costs = $11 Unit selling price is = $37 Fixed costs = $18,470 How many units
belka [17]

Answer:

2,845 units

Explanation:

To find the answer you need to consider that the profit is equal to the sales minus the costs.

Let's consider that x is the number of units sold

Sales= Price per unit*number of units sold

Sales= 37x

Variable cost= Cost per unit*number of units sold

Variable cost= 11x

Fixed cost= 18,470

55,498=37x-11x-18,470

55,498+18,470=26x

73,968=26x

x=73,968/26= 2,845

According to this, the answer is that they need to sell 2,845 units to make the desired profit.

6 0
3 years ago
A firm has determined its cost of each source of capital and its optimal capital structure which is comprised of the following s
barxatty [35]

Answer:

10.25%

Explanation:

Data provided in the question:

Long-term debt = 45%, after-tax cost = 7%

Preferred stock = 15%, after-tax cost = 10%

Common stock equity = 40%, after-tax cost = 14%

Now,

The  weighted average cost of capital for this firm will be calculated as:

= Long term debt × after-tax cost + Preferred stock × after-tax cost + Common stock equity × after-tax cost

or

= 0.45 × 0.07 + 0.15 × 0.10 + 0.40 × 0.14

or

= 0.0315 + 0.015 + 0.056

= 0.1025

or

= 0.1025 × 100%

= 10.25%

5 0
3 years ago
Jorge martinez hates to do performance appraisals of his subordinates because he always struggles when he has to evaluate their
frosja888 [35]

Jorge should provide feedback from all around the employee.

4 0
3 years ago
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Determine the amount of consumer surplus generated in the following situation. After soccer practice, Stacey is willing to pay $
Oliga [24]

Answer:

The answer is: There was no consumer surplus in this situation.

Explanation:

consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price of the good or service.

In this case there was no consumer surplus, since Stacey was willing to pay only $2 for a bottle of mineral water and its price was $2.25, so she didn't buy it.

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3 years ago
Advertising sales agents typically work under the direct supervision of a manager or supervisor.
wolverine [178]

Advertising sales agents typically work under the direct supervision of a manager or supervisor. True.

Initally, an advertising sales agent works under the direct supervision of a manager or supervisor. They are trained and coached by those who are experienced in the field. Once the sales agent has completed a set amount of hours (based on different agency requirements) they are no longer required to complete check-ins as often. These sales agents are then on their own most of the time by setting their own hours for work as long as they meet company goals.

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3 years ago
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