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3 years ago

Unlimited marital deduction applies when there is an outright bequest of stock

1 answer:

3 0

That statement is true.
outright bequest is another term for 'inheritance;.
When a man dies without writing any particular will, all of the assets that the man possess would be given to the spose. Due to unlimited marital deduction, the wife does not need to pay any form of taxes for all the wealth that she recieved

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(a) A local bookseller is considering expanding store space to increase his capacity for books.

Ksju [112]

The book seller should invest in the extra space.

Explanation:

As per the given data:

rent for the additional space given is $300 per year, the additional profit that will be pulled by adding on the space = $4000 per year, the current rate of interest given is = 12%

In order to calculate about the decision, the present values needs to be calculated first

The present value of the investment = (- $ 3000 plus $ 4000) by 1.121

The present value of the investment = $ 571.43

The present value of the investment is positve, hence the book seller should invest in the extra space.

8 0

3 years ago

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance

frez [133]

Answer:

bank statement 56,300

Checks outstanding (25,390)

Deposit in transit not recorded by bank 13,325

Adjusted bank statement 44,235‬

Cash account 42,920

Bank debit memo for service charges (35)

check register error: 1,350

Adjusted cash account 44,235

Explanation:

The procedure is to adjust for the unknow information and mistake of each party.

The bank is unaware of the check outstanding and deposit in transit

The company thanks to the banbk statement gets information about a mistake in his check register as it was posted for 1,500 when it should be 150.

6 0

4 years ago

Which of the following assets held by a manufacturing business is a §1231 asset?

insens350 [35]

Answer:

A factory building used in the business and held more than one year.

Explanation:

According to Section 1231. property are assets that are used in your trade or business and are held by the Taxpayer for more than one year.

The factory building has serve the purpose of the section. It is used for a trade and has been held by the taxpayer for more than a year, hence, the property can be termed an assets by a manufacturing business

6 0

3 years ago

A T-bill that is 290 days from maturity is selling for $96,040. The T-bill has a face value of $100,000.

umka2103 [35]

Answer: a 0.049, 0.05 and 0.05 or 5%

b 0.039, 0.041 and 0.041 or 4%

Explanation:

Ai discounted yield = [(Face value - purchase price)/Face value] * 360/ maturity

Discount yield =:[(100000 - 96040)/100000] * 360/290

= 0.0396* 1.24

= 0.049

ii. Bond equivalent yield (BEY) = [(Face value - purchase price)/purchase value] * 365/M

BEY= [(100000 - 96040)/96040] * 365/290

BEY = 0.05

iii EAR = [(1+BEY/n)exp n - 1)

EAR = [(1 + 0.05/(365/290)) exp (360/290) - 1]

EAR = [(1 + 0.05/1.26) exp (1.26) - 1

EAR = (1.04) exp (1.26) - 1

EAR = 0.05 or 5%

The same formula are applied for the B part

Discount yield = [(100000-96040)/100000] * 360/365

Discount yield = 0.0396 * 0.986

= 0.039

B ii. BEY = [(100000 - 96040)/96040] * 365/365

BEY = 0.041 × 1

BEY = 0.041

B iii. EAR = [(1 + 0.041/(365/365))exp (365/365) - 1

EAR = (1 + 0.41) - 1

EAR = 0.041 or 4%

4 0

3 years ago

A revenue tariff is designed to assist more efficient domestic producers, whereas a protective tariff is designed to promote imp

bezimeni [28]

Answer:

False

Explanation:

Revenue tariff means increasing earnings. It will raise government revenue instead of protecting domestic ventures. It is a direct income in the form of tax to obtain from corporate revenues.

On the other hand, protective tariffs are designed to protect domestic producers. It protects local manufacturers by imposing a heavy duty on imported products, which enables the products to become less attractive. Therefore, the aim is to reduce imports.

6 0

3 years ago

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