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lisov135 [29]
2 years ago
9

A client surrenders a variable annuity contract 5 years after purchase because of poor performance. Any surrender fee imposed:__

____.
a. increases cost basis.
b. reduces cost basis.
c. is deductible.
d. is not deductible.
Business
1 answer:
DanielleElmas [232]2 years ago
7 0

Answer: d. is not deductible.

Explanation: Annuity cancellation is possible before the specified term of the contract which may occur due to poor performance or other needs best known to the holder of the contract. However, when cancellation clause of an annuity is triggered, the holder may have to bear with losses arising from the cancellation in the form of Fall in the net asset value at the time, that is if the net asset value is lower than the cost basis, this is classed as ordinary and is deductible. However, the insurer also charges a non-deductible surrender charge upon cancellation.

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Cedrick's credit card was​ stolen, and he did not realize that it was stolen until he received his most recent billing stateme
denis23 [38]

Answer:

Cedrick's potential maximum liability = $50

Explanation:

Given:

$250 = a Blueminusray player

$600 = new set of tires

$200  = Cash withdrawal

$40 = interest charges

Find:

Cedrick's potential maximum liability

Computation:

Cedrick's potential maximum liability = Blueminusray player  - Cash withdrawal

Cedrick's potential maximum liability = $250 - $200

Cedrick's potential maximum liability = $50

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2 years ago
Arantxa corporation has outstanding 20,000 shares of $5 par value common stock. on august 1, 2014, arantxa reacquired 200 shares
nexus9112 [7]

The journal entries to record these transactions of Arantxa corporation using the cost method are given below.

<h3>How do you define journal entries?</h3>

The journal entry can encompass numerous recordings, every of that's both a debit or a credit. The act of maintaining or making statistics of any transactions both financial or non-financial is referred to as journal entries.

The missing information in the question can be given below:

On November 1, Arantxa reissued the 200 shares at $70 per share. Arantxa had no previous treasury stock transactions. Prepare Arantxa's journal entries to record these transactions using the cost method.

As per the given information,

The journal entries for the given information are as follows:

Treasury A/c   Dr.  $16,000

          To Cash                   $16,000

Cash                       $14000

Retained Earnings $2,000

       To Treasury stock                      $16,000

Hence, the journal entries recording the given transaction relating to treasury stock are explained above.

Learn more about journal entries here:

brainly.com/question/23156395

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6 0
2 years ago
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Legislation defining the mission of the Federal Reserve​ states: "The Board of Governors of the Federal Reserve System and the F
jeka57 [31]

Answer:

dual mandate.

Explanation:

dual mandate -

It is the practice in which the elected officials serves in more than one elected or public position .

In Britain , this term is also referred to as double jobbing .

In some cases , the dual mandate is prohibited by the law , as in the case of the federal states , because the federal office holders are not allowed to hold state office .

Hence  from the question information , the correct option is dual mandate .

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3 years ago
Regina is looking to start a knitting business and completes a target market profile to include in her business plan. Identify w
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Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product Tota
Alenkinab [10]

Answer:

Tatum Company

1. The carrying value of inventory at December 31, 2021 is:

$342,000

2. Adjusting Journal Entry:

Debit Inventory write-downs $47,000

Credit Inventory $47,000

To record the write-down of inventory value to LCNRV.

Explanation:

a) Data and Calculations:

Product   Total Cost        Total Net Reali-   LCNRV        Write-downs

                                          zable Value

101           $ 154,000          $ 117,000          $ 117,000        $ 37,000

102               111,000            127,000              111,000            0

103               77,000             67,000              67,000            10,000

104              47,000              67,000              47,000            0

Total      $ 389,000        $ 378,000        $ 342,000        $ 47,000

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2 years ago
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