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VMariaS [17]
3 years ago
5

Near the end of 2018, Byron realizes that he has a net short-term capital loss of $13,000 for the year. Byron has taxable income

(not including the loss) of $123,000 and is single. He owns numerous stocks that could be sold for a long-term capital gain.
a. What should he do before the end of 2018?
Business
1 answer:
BigorU [14]3 years ago
8 0

Solution:

Short-term capital loss of $13,000

Taxable income (not including the loss) of $123,000

He has several inventories, which can be marketed for a long-term profit.

Since Byron can only deduct $3,000 for the capital loss he must sell stock at a capital gain of $10,000 to offset the amount over the $3,000 deduction maximum.

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Suppose you have a $15 gift certificate usable in three different restaurants in which you can eat lunch. Your only goal is to e
s344n2d4d5 [400]

Answer:

A technological choice

Explanation:

Here, what you care about is taking the dollar home in form of cash not necessarily the free lunch in the restaurants. This is an example of technological choice.

5 0
3 years ago
You would like to establish a trust fund that will provide $50,000 a year forever for your heirs. The trust fund is going to be
Finger [1]

Answer:

$1,818,181.81

Explanation:

Data provided:

Amount that will be provided a year = $50,000

Expected rate of return = 2.75%

Now,

The Present value of perpetuity is given as:

Present value of perpetuity = \frac{\textup{Annual return}}{\textup{Expected rate of return}}

on substituting the respective values, we get

Present value of perpetuity = \frac{\textup{50,000}}{\textup{0.0275}}

or

Present value of perpetuity = $1,818,181.81

Hence,

The amount that must be deposited today to fund this gift is $1,818,181.81

5 0
3 years ago
Determine whether each scenario is an example of tax avoidance or tax evasion. Andrea keeps a record of all her business-related
Brums [2.3K]

Answer:

1. Tax avoidance

2.Tax avoidance

3.Tax evasion

Explanation:

Tax avoidance refers to a legal way of reducing one's tax liability through lawful deductions. Ways to reduce tax liabilities are; capitalizing on tax advantage retirement accounts, liasing with tax advisor on the legal way for tax avoidance. Tax avoidance is however legal.

Examples of tax avoidance are;

1. Andrea keeps a record of all her business related expenses.

2. Daniel claims the amount of interest paid for his mortgage as tax deductions.

Tax evasion is a deliberate attempt by a tax payer to avoid payment of tax liability. It is a fraudulent action by a tax payer to wilfully evade tax in an illegal manner. In tax evasion, income is concealed to tax authorities inorder to evade tax payment which is a criminal offence. It is to be noted that tax evasion is illegal in the eye of the law.

Example of tax evasion is ;

3. Christian did not report the tips he earned on his tax return.

7 0
3 years ago
Jill just made a purchase online. The store that she bought from gave her the option to pay with a check, money order, or credit
Readme [11.4K]

Answer:

The credit card is the most effective method of payment.

Explanation:

The store will not ship the item until the payment is accredited to their account. Because of this, Jill needs to pick the payment  method that have the fastest clear time.

The Check: usually takes about two business days for a deposited check to clear.

Money Order: It depends on the bank. Some banks allow for money orders to be cleared and deposited almost immediately, and some require at least one business day for it to clear.

Credit Card: almost all the time payments can take place immediately.

The obvious choice is Credit Card payment for the instant clear of the funds in the store account.

6 0
3 years ago
The Goliath Inc. decides to pay the following dividends over the next three years: $2, $2.6, and $3.38. Thereafter, the company
pochemuha

Answer:

The solution and complete explanation for the above question and mentioned conditions is given below in the attached document.i hope my explanation will help you in understanding this particular question.

Explanation:

7 0
3 years ago
Read 2 more answers
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