1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Digiron [165]
3 years ago
13

Mr. Bailey would like to gift $515,000 (FMV) of appreciated property (basis $200,000) to his son. Mr. Bailey doesn't want to use

his liquid assets to pay the gift tax (40%). He already has gifted $11,400,000. What would you suggest?
Business
1 answer:
Oliga [24]3 years ago
7 0

Answer:

He should set a grantor retained annuity trust (GRAT).

Explanation:

Mr. Bailey would be the grantor that transfers the asset into the GRAT, but retains the right to receive annuity payments for a number of years. The IRS has set a minimum annuity corresponding to the Section 7520 rate, during the last two years the rate has varied from 2-3%. When the trust expires (pays all the annuities), the beneficiary gets the asset tax free.

Since the grantor is giving up an asset but in exchange is receiving an annuity form it, there is no applicable gift tax, it is called a zeroed-out GRAT.

This type of grant makes sense only if the grantor believes that the future value of the asset will be higher than the current value, since the annuity is based on the current value. In this case, Mr. Bailey would receive payments based on a $200,000 value, but the property's fair market value is already higher and should increase as time passes.

You might be interested in
Tengo una pregunta de mi clase económica y finanzas personales <br><br> A debtor is??
astraxan [27]

Answer:

A person that owes money

Explanation:

que tengas buen dia

7 0
3 years ago
When a company maintains its price but removes or prices separately one or more elements that were part of the former offer, suc
fomenos

The name which is given to the process when a company maintains its price but removes or prices separately is known as E. unbundling

<h3>What is Price?</h3>

This refers to the attached value which is given to a good or service that is exchanged for that particular value.

Hence, we can see that when a company removes freebies such as free delivery or installation but maintains its price is known as unbundling and is a market activity.

Read more about marketing here:

brainly.com/question/25754149

8 0
2 years ago
Can estimate wind speed and predict precipitation by use of radio waves.
Leona [35]
The answer would be the Doppler Radar

The Doppler Radar used some sort of microwave signal to analyze the motions that happened by checking how much the motion altered its frequency. Doppler Radar is most commonly used in weather forecast or meteorology unit
6 0
3 years ago
Healthy Living, a diet magazine, collected $240,000 in subscription revenue on May 31. Each subscriber will receive an issue of
stich3 [128]

Answer:

Revenue that has been earned by the end of December is $ 140,000

Explanation:

When entity uses the accrual method of accounting, the transaction is recorded as and when it occurs.

The subscription revenue received relates to services to be rendered over 12 months. Therefore the Revenue is recognised as magazines are issued over - time.

<em>From the first issue June to end of December , there exists 7 issues of magazines.</em>

Revenue to be recognised = $240,000 × 7/12

                                             = $ 140,000

7 0
3 years ago
A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond matures in 3 years and pays interest annual
algol [13]

Answer:

$1,008.18

Explanation:

Using a financial calculator, you can calculate the price of this bond with the following inputs;

Maturity of the bond; N= 3

Face value ; FV = 1000

Annual coupon payment; PMT = 7% *1000 = 70

Yield to maturity ; I/Y = 6.69%

then compute the Price;  CPT PV = 1,008.182

Therefore, the current price is $1,008.18

6 0
3 years ago
Other questions:
  • Jane receives utility from days spent traveling on va- cation domestically (D) and days spent traveling on vacation in a foreign
    12·1 answer
  • Calip Corporation, a merchandising company, reported the following results for October: Sales $427,000 Cost of goods sold (all v
    15·1 answer
  • "When aggregate demand​ increases," A. the price level is likely to fall as GDP rises. B. aggregate supply will shift to the rig
    8·1 answer
  • DAA's stock is selling for $15 per share. The firm's income, assets, and stock price have been growing at an annual 15 percent r
    6·1 answer
  • When a periodic inventory system is used, a.only the reduction of inventory is recorded each time a sale is made. b.only the cos
    11·1 answer
  • Luxere Hotels International, an American company, sells the rights to other hospitality companies globally to open hotels with t
    11·1 answer
  • Carla Vista Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,480 per month. One of the
    6·1 answer
  • Globalization is the process of
    13·1 answer
  • At December 31, 2017, Mallory, Inc., reported in its balance sheet a net loss of $12 million related to its postretirement benef
    9·1 answer
  • The systematic risk principle states that the expected return on a risky asset depends only on the asset’s ___ risk.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!