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andriy [413]
3 years ago
14

In July, a customer invested $10,000 in the ABC Mutual Fund. In December of the same year, ABC announced a long-term capital gai

ns distribution. In May of the next year, the customer decided to redeem his shares for a capital gain. How are both of the capital gains treated for tax purposes
Business
1 answer:
mihalych1998 [28]3 years ago
4 0

Answer:

Capital gains distribution is treated as long term

Capital gain from from redemption is treated as short term

Explanation: Capital gains may be explained as the profit made from the sale of a property or investment. Depending on the holding duration of the stock or bond, a capital gain may be classed as short term is held for below one year or long-term, of held for more than 1 year. However, According to the Internal Revenue service regulation, Capital gains are taxed as long term irrespective of the holding period in which the owner has possessed the fund.

Capital gains redemption however, follows the usual time-line and in this case would be taxed as short-term because the holding period is between July to May, which is a 10 months. Since it hasn't exceeded a year, then, it is classed as short term.

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Trader Joe's is an American chain of grocery stores headquartered in Monrovia, California. Trader Joe's creates a competitive ad
Goryan [66]

Answer:

Differentiation focus strategy

Explanation:

Competitive advantage is defined as the factors or strategy that gives a firm an edge over others in the same industry.

They are able to sell more product and make more profit than their competitors.

Trader Joe's creates a competitive advantage by its ability to incorporate upscale or attractive attributes into its product offerings at lower costs than rivals.

They are using differentiation focus strategy which entails developing a unique product based on selected attributes that are widely valued by customers.

Focus is given to making products that specifically meet these needs.

The result is a product that is unique in the industry. Products from Trader Joe's can't be found anywhere else. Also they provide a unique atmosphere and unique interaction with their staff.

They have been able to have reduced pricing through research and other tactics aimed at reducing cost of production in a sustainable manner.

4 0
3 years ago
For each of the following types of indirect expenses and service department expenses, identify one allocation basis that could b
hodyreva [135]

Answer: (A) Computer service expenses of production scheduling for operating departments

Explanation:

 The computer services expenses of the production scheduling is one of the type of indirect expenses and also the type of service department expenses type in the operating department.

 The indirect expenses is one of the type of expenses that cannot be directly contribute with the cost object or services in the business department expenses.

 According to the given question, the computer service expenses is one of the allocation basis that is used as the indirect expenses in an organization or firm and the indirect expenses are categorized into two main parts that is:

 1) Fixed

 2) Recurring

Therefore Option (A) is correct answer.          

5 0
3 years ago
An entity has two long-term construction contracts, one of which qualifies for revenue recognition while the performance obligat
Morgarella [4.7K]

Answer: construction receivable

Explanation:

Accounts receivable management involves improving the collection process for efficiency, identifying the reasons for nonpayment and being proactive in reminding clients about their overdue accounts.

6 0
3 years ago
Read 2 more answers
Find the amount of interest earned by a deposit of $2450 for 6.5 years at 5.25% compounded
Serggg [28]

Answer:

$3443.86

Explanation:

a=p(1+r/n)^nt

a=2450(1+.0525/12)^12*6.5

3443.86

4 0
3 years ago
Logistics Company had the following items listed in its trial balance at 12/31/2018: Balance in checking account, Bank of the Ea
Elena L [17]

Answer: $352,000

Explanation:

The information needed to calculate the cash and cash equivalent are:

Balance in checking account, Bank of the East = $ 382,000

The restricted cash included in the checking account = $49,000

Treasury bills = $19,000

We subtract the restricted cash from the balance in the checking account and then add it to the treasury bills. This will be:

= ($382,000 - $49,000) + $19,000

= $333,000 + $19,000

= $352,000

4 0
3 years ago
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