Answer:
Gift Tax GSTT
Explanation:
In such a scenario, Grandma and Grandpa Generoushave a current liability to the Gift Tax GSTT. This tax rate applies to Grandma and Grandpa Generous because the gift exceeds the limit per individual for gifting and because they have exhausted their lifetime gift-tax exemption. Meaning that they have to pay taxes on this gift of $5.43 million which according to the GSTT guidelines is a fixed rate of 40% of the gift that was given.
Answer:
P0 = $77.397794 rounded off to $77.40
Explanation:
The two stage growth model of DDM will be used to calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
- g1 is the initial growth rate
- g2 is the constant growth rate
- D0 is the dividend paid today or most recently
- r is the required rate of return
P0 = 1.89 * (1+0.23) / (1+0.15) + 1.89 * (1+0.23)^2 / (1+0.15)^2 +
1.89 * (1+0.23)^3 / (1+0.15)^3 +
1.89 * (1+0.23)^4 / (1+0.15)^4 +
1.89 * (1+0.23)^5 / (1+0.15)^5 + 1.89 * (1+0.23)^6 / (1+0.15)^6 +
1.89 * (1+0.23)^7 / (1+0.15)^7 + 1.89 * (1+0.23)^8 / (1+0.15)^8 +
1.89 * (1+0.23)^9 / (1+0.15)^9 + 1.89 * (1+0.23)^10 / (1+0.15)^10 +
[(1.89 * (1+0.23)^10 * (1+0.07) / (0.15- 0.07)) / (1+0.15)^10]
P0 = $77.397794 rounded off to $77.40
Answer:
Yes, it is true that for the built-in loss limitation to apply, the property must have been acquired by the corporation as part of a plan whose principal purpose was to recognize a loss on the property by the liquidating corporation. That is why A net built in loss has to be determined first.
Explanation:
Limitation is equal to the value of the stock of the loss borne by corporation immediately before the ownership changes.
The basis limitation rule only applies when there is a net built-in loss.
Built-in losses are the excess of the adjusted basis for U.S. federal income tax of any Contributed Property over its Agreed Value as of the time of contribution treated as deductions or losses in the year recognized.
A net built-in loss occurs when the aggregate adjusted basis of the property exceeds its fair market value.
The inflation rate was 5.9 percent between the first and second years, and 8.3 percent between the second and third years. Hence, A is the correct option.
When we compare the values for any two periods or locations it reveals the average change in prices between the two periods or the average difference in prices between locations, the price index is a measure of relative price changes.
Take the Market Basket's price for the interest-bearing year, divide it by the Market Basket's price for the base year, then multiply the result by 100 to get the Price Index.
Price indices typically pick a base year and set that year's index value to 100. As a proportion of that base year, every other year is expressed. Let 2000 serve as the basis year in this illustration: In 2000, the index's initial value was $2.50; since $2.50/$2.50 = 100%, the index's current value is 100.
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When using absorption costing when production is greater than sales, a portion of fixed overhead is allocated to ending inventory.
Production is the process of combining diverse material and immaterial inputs to create a consumable good or service. It is the process of producing something of worth, goods, or assistance that benefits a person.
Manufacturing is the process of creating items or goods out of components or raw materials. To put it another way, manufacturing employs inputs to produce outputs fit for consumption, i.e., things or products that are valuable to the consumer or end-user. The creation of furniture is an illustration of production. Harvesting corn for food is an illustration of production. Corn production is an illustration of production.
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