1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lisov135 [29]
3 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]3 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.

You might be interested in
Bonnie Austin, age 30, used to work part time in a local restaurant. This year she quit her job to take care of her five-month-o
sergiy2304 [10]

Answer:

The survey conducted by the Bureau of Labor Statistics today will count Bonnie as not in the labor force .

Explanation:

" not in the labor force " -

The people who are not employed and even are not unemployed are called the " not in the labor force " .

The people who are present in this category are the -

  • retired peoples ,
  • students
  • The people taking care of children ,
  • people who are not working but searching for job ,

All of them fall in this category .

Hence , according to the survey , Bonnie is under the category of " not in the labor force " .

3 0
3 years ago
Joe met with all of his department heads to listen to their opinions about buying a new machine. Although they all thought it wa
balandron [24]

Answer:

A. Democratic

Explanation:

Leadership is art of guiding & motivating a group of people to achieve a common goal.

Democracy is form of governing based on considerate importance to all people's opinion in group. It is opposite of 'autocratic' governing where leader has immense power & takes decision based on only own opinion.

Joe is considering opinion of all the members of organisation, while taking a decision of purchasing a machine. He paid attention to not only opinion of department heads, but also opinion of other employees. Despite of he & department heads perceiving it to be a good idea, employees considered it to be unnecessary. Thereafter Joe didn't purchase the machine. So, his decision encompassing all people's opinion depicts Democratic Leadership.

6 0
3 years ago
An allocation base that causes overhead costs to be incurred is called a(n):
barxatty [35]
It is called A COST DRIVER. A cost driver refers to any factor that causes a change in the cost of an activity. Cost driver is used to assign overhead costs to the quantity of a particular goods that is manufactured. Example of a cost driver is direct labour hours input into a production operation. 
7 0
3 years ago
Anne’s marginal income tax rate is 32 percent. She purchases a corporate bond for $19,500 and the maturity, or face value, of th
Bess [88]

Answer:

6.0%

Explanation:

Given that :

Marginal income tax rate = 32%

Interest rate before taxes = 8.8%

Annual after-tax rate of return if bond matures in 10 years will be the same as the annual after tax rate of return since the annual rate is constant.

Hence,

Annual after tax rate of return = Interest rate × (1 - tax rate)

Annual after tax rate = 8.8% × (1 - 32%)

Annual after tax rate = 0.088 × (1 - 0.32)

Annual after tax rate = 0.088 × 0.68

Annual after tax rate = 0.05984

= 0.05984 × 100%

= 5.984% = 6.0%

6 0
3 years ago
Accounts receivable in an existing business:
Artemon [7]

Answer:

The correct answer is letter "A": are rarely worth their face value.

Explanation:

Accounts receivables are notes issued to customers after selling them a product or rendering services on credit. The repayment term may vary from 30, 60 or 90 days. If an account receivable is not paid after that period it could be considered as an uncollectible account which implies the company will incur losses.

<em>Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.</em>

4 0
3 years ago
Other questions:
  • When an economist says that a currency has become stronger he or she means that?
    8·2 answers
  • What is the exclusive control of a product and the means of producing it with no regard for quality or customer needs?
    14·1 answer
  • Every time andres raises his hand, he receives one point. "raising his hand" is considered the:
    11·1 answer
  • A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic crisis caused prices
    8·2 answers
  • Which of the following is the best reason for researching and comparing colleges’ curricula before making a final decision?
    15·2 answers
  • You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50%, and the maintenance m
    13·1 answer
  • Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $8.4
    6·1 answer
  • The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within
    15·1 answer
  • You short-sell 200 shares of Rock Creek Fly Fishing Co. today at $50 per share. If you want to limit your loss to $2,500, $ Blan
    12·1 answer
  • What was the most important benefit of the UNDP-IKEA program for the women who were part of it
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!