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3 years ago

How do you know if you are eligible to open and make contributions to a Roth IRA?

Business

1 answer:

Whitepunk [10]3 years ago

7 0

Answer:

The correct answer is letter "B":You have to earn below a certain amount to make contributions .

Explanation:

A Roth Individual Retirement Account (IRA) is the type of retirement account where contributions grow tax-free and allows individuals to withdraw funds under certain conditions. <em>People are eligible to open a Roth IRA as long as their income is less than $139,000 for singles and $206,000 for married couples- </em>information that applies for the year 2020.

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The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,445,000, $149,000 in the common stock account,

Misha Larkins [42]

Answer: $633,500

Explanation:

Cash flow to creditors:

= Interest Paid - (2016, Long term debt - 2015, Long term debt)

= $98,500 - ($1,670,000 - $1,445,000)

= -($126,500)

Cash flow to stockholders:

= Dividend paid - [(2016 common stock account + 2016 additional paid in surplus) - (2015 common stock account + 2015 additional paid in surplus)]

= $154,000 - [($159,000 + $3,040,000) - ($149,000 + $2,740,000)]

= -($156,000)

Therefore,

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

= -($126,500) + (-$156,000)

= -($282,500)

Hence,

Operating cash flow = Cash flow from assets + Capital spending + Change in working capital

= -($282,500) + $1,050,000 + (-$134,000)

= $633,500

5 0

3 years ago

Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart ha

Naily [24]

Answer

The answer and procedures of the exercise are attached in the following images.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.

4 0

4 years ago

Holding all other factors constant and using the midpoint method, if a candy manufacturer increases production by 20 percent whe

swat32

The supply is elastic in nature.

Price elasticity expresses the percentage change in quantity required caused by a one percent increase in price while maintaining all other variables constant. If the elasticity is 2, a 1% increase in price results in a 2% decrease in amount demanded.

Price elasticity is computed with the help of formula given below:

Price elasticity of supply = % increase in quantity supplied / % increase in price

Price elasticity of supply = 20%/((.6-.5)/(.6+.5)/2)

Price elasticity of supply = 4.4

It is elastic in nature, because value of elasticity of supply is more than 1.

To know more about price elasticity click here:

brainly.com/question/5078326

#SPJ4

3 0

2 years ago

An investor owns some stock in Harry's Pottery Inc. The stock recently underwent a 5-for-4 stock split. If the stock was tradi

USPshnik [31]

Answer:

Following is attached the solution for the question given.

I hope it will help you a lot!

Explanation:

3 0

4 years ago

A 10-year bond paying 8% annual coupons pays $1000 at maturity. If the required rate of return on the bond is 7%, then today the

Anon25 [30]

Answer:

Bond Price = $1070.235815 rounded off to $1070.24

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1000 * 0.08 = 80

Total periods (n)= 10

r or YTM = 7%

The formula to calculate the price of the bonds today is attached.

Bond Price = 80 * [( 1 - (1+0.07)^-10) / 0.07] + 1000 / (1+0.07)^10

Bond Price = $1070.235815 rounded off to $1070.24

6 0

3 years ago