Answer: $0
Explanation:
Based on the information given in the question, the amount that is taxable to Jane in the current year will be $0.
We should note that there'll be no deduction made for the payments made since the settlement with regards to the divorce agas already provided for the payment. The payments in this case aren't included in the gross income of the person that'll collect the payment.
Therefore, the answer is $0.
Answer:
the residual income is $2,000
Explanation:
The computation of the residual income is shown below:
= Operating income - rate of return × operating assets
= ($100,000 - $94,000) - (10% × $40,000)
= $6,000 - $4,000
= $2,000
hence, the residual income is $2,000
The same is to be considered and relevant
D. Sounds like the most reasonable one
Answer:
C) $1,700
Explanation:
Uriah should report as taxable income the interest received from the overpayment of federal income taxes ($400) + the money awarded to him in a lawsuit against his previous investment advisor ($300) + interests on US savings bonds ($1,000) = $1,700
Interest gained on municipal bonds isn't included in his income taxes and only injury settlements are not included in gross income.
The text states, “inflation is a type of tax.” This tax refers to the lower purchasing power of money when inflation occurs.
Answer:
C. the lower purchasing power of money