Answer:
C. She may receive distributions over her expected life
Explanation:
The deal that derives that if there is one inherits so IRA could be inherited from the spouse. In this case, the fund would remain in the IRA with no tax outstanding unless the spouse continues for taking the distributions it could be started by age 70 and half.
If we skip the given away option that implies the transfer the IRA in a Beneficiary Distribution Account. Also the distributions arise when there is a depletion over the five years
Since she is 28 years old so the expected life is for another 50 + years or more so it decreases the needed yearly distribution
Therefore the option C is correct
Answer:
The journal entry for the issue of bond for cash is shown below:
Explanation:
January 1
Cash A/c..........................................Dr $281,400
Bonds Payable A/c....................................Cr $240,000
Premium on Bonds Payable A/c...........Cr $41,400
Working Notes:
Cash = Bonds Par Value × Selling Price
= $240,000 × 117.25 %
= $281,400
Premium on bonds payable = Cash - Bonds Payable
= $281,400 - $240,000
= $41,400
Answer:
B. 17.78 days
Explanation:
Days Sales Outstanding or Age of Receivables measures the average number of days it take for a company to collect its receivables.
This is computed by dividing the Average Accounts Receivables over Daily Sales. Bear Rug's Average Accounts Receivable is $39,500 ($41,000 + $38,000/2) while its Daily Sales is 2,222 ($811,000/365).
Thus, the average days for the firm to collect its receivables are 17.78 days ($39,500/2,222).
