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larisa86 [58]
3 years ago
6

If your 60-year-old customer purchases a nonqualified variable annuity and withdraws some of her funds before the contract is an

nuitized, what are the consequences of this action?
Business
1 answer:
Svetlanka [38]3 years ago
5 0

Answer: Ordinary income tax on earnings exceeding basis.

Explanation:

From the question, we are informed that a 60-year-old customer purchases a nonqualified variable annuity and withdraws some of her funds before the contract is annuitized.

The consequences of this action is that Ordinary income tax on earnings exceeding basis. It should be note that the distributions from a nonqualified plan had to do with return on original investment and income from the investment. Since there's defer of the income, it'll be taxable as an ordinary income.

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Which of the following price indices is designed to measure changes in the prices of goods and services purchased by a typical i
skad [1K]

Answer:

d. Consumer price index

Explanation:

Consumer price index in any country consists of goods and services that are used in day to day activities by consumers e.g. daily food items, utilities, transportation etc. The index is used to measure the increase in weighted average prices of the constituents over a particular time.

Option A is price index for producers that measures the increase in price of goods and services that are typically used by different producers for their output.

Option B is an analysis that is used to assess the trends of any economy. This analysis is performed by government economists, officials and government to make informed decisions about future actions. Individuals have no use of the index.

Option C Gross domestic product (GDP) deflator is a price adjustment to GDP of current year to depict the actual growth in value of goods and services produced in a particular year. GDP deflator is a reduction of inflation rate from nominal rate of increase in GPD.

8 0
4 years ago
If you are an equity investor how do you make money from your investment?
denis23 [38]

Answer:

(C) Selling the investment for more than you paid for it.

Explanation:

The investor can create profits by buying shares at a lowered price and trading them at a greater exchange price. Bonus Problem: If a business is functioning particularly well, it might give available shares to its stockholders. Investors should have a clear knowledge of their maneuvering before buying stock so they understand the best technique to estimate any possible stock purchase.

4 0
3 years ago
Honda Motor Company is considering offering a $ 1 comma 800 rebate on its​ minivan, lowering the​ vehicle's price from $ 30 comm
finlep [7]

Answer:

Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

Explanation:

Giving the following information:

Honda Motor Company is considering offering an $1800 rebate on its​ minivan

New price $30200

Old price $28400.

The marketing group estimates that this rebate will increase sales over the next year from 42000 to 53900 vehicles.

Honda's profit margin with the rebate is $5650 per vehicle.

Normal price:

Income= (5650+1800)*42000= $312,900,000

New price:

Income= 5650* 53900= $304,535,000

Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

6 0
4 years ago
candace contributes $3,000 a year to her 401(k) plan. Her employer matches it with a 3,000 annual matching contribution. how muc
a_sh-v [17]

Answer:

Explanation:

73937>6877%=86387$

7 0
3 years ago
What type of cost involves an evaluation of comparative advantage and disadvantages
vlabodo [156]

Answer:

It is the "opportunity cost."

Explanation:

The "opportunity cost" is considered to be the cost that a person incurs in relation to the benefits of the other option that he didn't choose. When it comes to comparative advantage, this cost is naturally present. Comparative advantage refers to the ability that a person or a business is able to produce a good more efficiently compared to another activity he didn't choose. The opportunity cost plays a vital role here.

When a person/company evaluates the advantages and disadvantages of two options (for example), they will try to weigh these things. If the advantages of one option outweighs the other, the person/company will choose this because it is more efficient. The" opportunity cost" here refers to the cost that they incurred relating to the enjoyment benefits from the other option, as they haven't chosen it.

7 0
3 years ago
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