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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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Answer:

The total equivalent units for direct materials for October is  4,200

Explanation:

The Concept of Equivalent Units measures the number of units completed in terms of input element introduced in the process.

The Equivalent Units are Calculated on the units ending that is on  the Units Completed and Units of Closing Work in Process

Note that materials are added at the beginning of the process

<u>Units Completed</u>

Are 100% complete in terms of Raw Materials

Equivalent units = 3900 × 100 % = 3900

<u>Units of Closing Work in Process</u>

Are 100% complete in terms of Raw Materials

Equivalent units = 30 × 100 % = 300

Total Equivalent Units = 3900+300 =  4,200

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3 years ago
Bradley is sitting on his porch enjoying his very large front yard and drinking a lemonade when Chris, a kid from down the stree
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c implied contract

Explanation:

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3 years ago
Is a decline in the value of the real against the us dollar good for embraer, bad for embraer, or a mixed bag? explain your answ
avanturin [10]

The decline in value of the real towards the U.S. greenback changed into precise for Embraer due to the fact the components for the nearby jets cost much less once they were translated into reals, making it tremendously reasonably priced to produce. therefore, Embraer's earnings margins have been high.

A decline in value takes place in any 12 months in which the modern market fee of actual assets is less than its adjusted base year price as of the lien date, January 1.

A depreciating asset is an asset that has a restrained powerful existence and may fairly be predicted to say no in value over the time it's miles in use. equipment, gadgets,s and different gadgets along with computer systems and books are depreciating property.

For example, if an asset is used 40% of the time for a non-public motive, the deduction for its decline in value is decreased by 40%. The decline in fee of positive property costing $300 or less may be the value, this is, you may be entitled to an immediate deduction.

Learn more about the decline in value here

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3 0
2 years ago
Resources are used efficiently in the sunhat market because when​ _______.    A. production is capital​ intensive, producer surp
Bad White [126]

Answer:

The correct answer is B

Explanation:

Resources are used efficiently in the sunhat market because when marginal social benefit equals marginal social cost, total surplus is maximized. Thus, From the given four options only the option B is the correct option.

MSC = Marginal Social cost

MSB = Marginal Social Benefit

It is becuase in the competitive market, the quantity that is supplied in the market in same to the quantity which is demanded.

6 0
3 years ago
A new technological breakthrough increases production for an industry and shifts the supply curve to the right. If the firm ____
Katyanochek1 [597]

Answer:

The correct answer is letter "C": produces products that are considered elastic.

Explanation:

Elasticity refers to the sensitivity of a good or service to reflect change in its supply or demand after a change in price. A product's supply is said to be elastic if the changes in the quantity supplied increases and it immediately determines a price in the price.

Thus, if for technological reasons the output of a company increases, considering that the product is elastic, the prices will increases which will provide the organization more revenue. That firm will be more than glad about the technological advance.

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3 years ago
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