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valentina_108 [34]
3 years ago
7

5 years ago,an individual has invested $10,000 in aninvestment trust. Over those years, the trust has distributed $2,000, consis

ting of $1,600 of dividends and $400 of capital gains. The investor has reinvested these distributions in additional trust units. The investors aggregate current cost basis in the trust is:A. $10,000
B. $10,400
C. $11,600
D. $12,000
Business
1 answer:
Nimfa-mama [501]3 years ago
8 0

Answer:

correct option is D. $12,000

Explanation:

given data

invested = $10,000

distributed = $2,000

dividend = $160

capital gain = $400

solution

As when investor beginning trust shares is  $10,000 and 2,000 of distributions  

so that here all subject to tax in years tax return

and here reinvestment in to new trust shares that is increase basis from $10,000 to $12,000

so investor have capital gain when sell all the shares more than $12,000

so here they have capital loss if sale  less than $12,000

so correct option is D. $12,000

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Mkey [24]

Answer:

$35,000

Explanation:

Data provided in the question:

Accounts Receivable at the start of the year = $6,000

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Now,

cash collected from the customers

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= $6,000 + $38,000 - $9,000

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8 0
3 years ago
state four measures that may be taken by the government to control inflationstate formations that taken by the government to con
Margarita [4]

Answer:

see below

Explanation:

The government takes contractionary measures to check against rising inflation. Contractionary policies reduce liquidity in the market, thereby reducing the rate of money circulation.

<u> Four measures that may control inflation include</u>

1<u>. Increasing interest rates</u>: An increase in interest rates increases the cost of borrowing money. When the cost of money becomes expensive, firms and households reduce the borrowing rate, reducing the money supply rate. In turn, the inflation rate declines.

2. <u>Increasing reserve requirement:</u> Reserve is the proposition of customer discounts that commercial banks are expected to maintain at their custody at all times. Increasing the reserve requirement means banks will reduce lending, thereby reducing the money supply in the economy.

3. <u>The open market sells</u>: The government makes available many treasury bills and bonds for purchase in the market. It offers attractive rates that encourage banks and other institutions to buy them. Buying the treasury bills means banks will use a substantial percentage of customer deposits on treasury bills other than lending to customers. Open market sales mop up excess liquidity in the markets, reducing the rate of cash circulation.

4. <u>Reduction of government spending:</u> Government spending is a fiscal policy tool. The government is a big spender in an economy. If the level of spending is decreased, the money supply in the economy is reduced.

5 0
2 years ago
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Sonbull [250]

Answer:

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When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.

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3 years ago
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Sidana [21]

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<u>Explanation:</u>

The law is set of rules that guide our conduct in society and enforceable through public agencies. For business environment, law provides important guide to make ethical decision making. But sometimes the norms which are ethically right are illegal and sometimes legal norms are unethical.

The example of cases which are ethically right but legally wrong are cheating in taxes or driving over the speed limit or spitting by the road side. The example of cases which are ethically wrong but legal right are falsifying financials, misleading markets and many more.

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Which of the following is NOT true about College
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Answer:

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