<span>$11,320 with its interest rate over the year will be $13659.84. If Francine paid $436 each month for a year he would have paid off $5232 in a year. His debt balance would still be remanding at $8427.84. Francine will have paid off a large amount of his payment plan with the company however he will still be required to spend 18 months or so to pay back what he owes as there was a a 20.67% interest sum added to his payment plan with the company.</span>
Answer:
He should set a grantor retained annuity trust (GRAT).
Explanation:
Mr. Bailey would be the grantor that transfers the asset into the GRAT, but retains the right to receive annuity payments for a number of years. The IRS has set a minimum annuity corresponding to the Section 7520 rate, during the last two years the rate has varied from 2-3%. When the trust expires (pays all the annuities), the beneficiary gets the asset tax free.
Since the grantor is giving up an asset but in exchange is receiving an annuity form it, there is no applicable gift tax, it is called a zeroed-out GRAT.
This type of grant makes sense only if the grantor believes that the future value of the asset will be higher than the current value, since the annuity is based on the current value. In this case, Mr. Bailey would receive payments based on a $200,000 value, but the property's fair market value is already higher and should increase as time passes.
Answer and Explanation:
The classification is as follows
1.
A. financing activity = Cash outflow as cash is gone
B. Operating activity = Cash inflow as cash is received
C. Operating activity = Cash outflow as cash is gone
D. Financing activity = Cash outflow as cash is gone
E. Investing activity = Cash outflow as cash is gone
2.
A. Investing activity = Cash outflow as cash is gone
B, Investing activity = Cash inflow as cash is received
C. Operating activity = Cash outflow as cash is gone
D. Operating activity = Cash inflow as cash is received
E. Operating activity = Cash inflow as cash is received
F.financing activity = Cash inflow as cash is received
Answer:
6 hours
Explanation:
Let k = time it takes Karen to paint the house alone
then according to the question,
(2/3)(k)(1/k + 1/12) = 1
⇒(2k/3)(1/k + 1/12) = 1
⇒(2k)(1/k + 1/12) = 3
⇒(2 + k/6) = 3
Multiplying both sides by 6:
12 + k = 18
k = 6 hours
therefore Karen takes 6 hours to complete the Task.
