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cupoosta [38]
3 years ago
8

Abe and Jan are well to do and are concerned that the estate tax exemption of $10,500,000 (combined) will not be sufficient to a

void estate taxes. The have 3 married children and 7 grandchildren. They would like to give about $300,000 per year to their children and grandchildren, but do not want to pay any gift tax or reduce their lifetime gift and estate tax deduction. They also do not want the young children to be in control of the money. They have heard about the Crummey powers and ask you if that would be the solution to their situation. Research the Crummey rules and recommend to Abe and Jan what to do.

Business
1 answer:
Alinara [238K]3 years ago
7 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Warnes Motors' stock is trading at $20 a share. Three-month call options with an exercise price of $20 have a price of $1.50. Wh
jek_recluse [69]

Answer:

B. The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%.

Explanation:

Given

Trading price = $20

Exercise price of call option = $20

Call option price = $1.50

Price increment = 10% to $22

It's not be noted that the discounted present value of a price of an option is represented by its expected payoff.

An increment of $2 in stock price attracts an increment of more than $2 in the payoff option.

Having highlighted that, it's also to be noted that the increment in expected payoff will be by an amount less than $2 and same with present value because the possibility is less than 1. So, the price of the option will increase by less than $2.

Moving to the percentage increase;

This will be larger than 10%.

This is because when stock price increases by 10%, the value of the option will increase by more than 10%.

8 0
3 years ago
On January 1, 2020, Sunland Company purchased land for an office site by paying $2680000 cash. Sunland began construction on the
SIZIF [17.4K]

Answer:

Sunland Company

The amount of interest cost to be capitalized during 2020 is:

= $948,000.

Explanation:

a) Data and Calculations:

Cost of purchased land = $2,680,000

Construction expenditures:

Date                        Expenditures:

January 1, 2020       $ 1,780,000

April 1, 2020              2,530,000

May 1, 2020               4,490,000

June 1, 2020             4,720,000

Total expenditure $13,520,000

Weighted-average accumulated expenditures = $4,300,000

Debts:

January 1, 2020, 9%, 3-year note payable = $3,650,000

January 1, 2020, 12%, 6-year note payable balance = $1,400,000

Interests capitalization:

Weighted-average accumulated expenditures = $451,500 ($4,300,000 * 10.5%)

3-year note payable = $328,500 ($3,650,000 * 9%)

6-year note payable balance = $168,000 ($1,400,000 * 12%)

Total interest to be capitalized = $948,000

8 0
3 years ago
Donald, the owner of a popular restaurant, is a religious man, and he needs to make a decision on whether he will add beer and w
alisha [4.7K]

Answer:

it got a little hard to understand at the end but from what read, I'll say it's true...

5 0
3 years ago
A mining company declared a liquidating dividend. The journal entry to record the declaration must include a debit to1. Retained
gregori [183]

Answer: Option (2)

Explanation:

Paid in capital is referred to as or known as amount of the capital which is paid in by the investors during the preferred or common stock issuance, including par value of shares in addition to the amount in excess of the par value. The paid in capital tends to represent funds which are raised by organization through selling of equity.

6 0
3 years ago
1.You should document your sources in all of the following situations except A. when using someone else's unique idea. B. when u
jeka94

2. A. Feasibility report

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