Answer:
Simply because tax-deferred accounts are taxed only when the investor receives or withdraws money from them. For example, a 401 (K)'s interest and capital gains are not taxed until the beneficiary retires and starts to receive payments, and that may take a long time.
It is not the same to be taxed immediately, because that reduces the amount invested. For example, you invest have $100 to invest and your income tax rate is 22%.
- a tax-deferred account that earns 5% per year will earn $5, and then the principal will increase to $105 for the next, and keep earning more money.
- a taxable account will only have a $78 after taxes are paid, and if it earns 5%, then it will only earn $3.90 at the end of the year, and the principal will increase to $81.90.
Answer:
b) $665,000.
Explanation:
Primer income: $625,000
SealCoat income: $50,000
Primer interest in SealCoat is 80% therefore primer is a parent company to SealCoat and is entitled to $40,000 (80%*$50,000) on SealCoat income.
Therefore, consolidated net income for 2013 is: $665,000 (625,000+40000)
Answer:
Nil
Explanation:
On receipt of the amount, the entries to be posted would be;
Debit cash account $27,000
Credit deferred revenue $27,000
Being entries to recognize cash received in advance for rental income.
As such, no rental income was earned in 2019. Amount to be included in Ral's taxable income for rent revenue is nil.
Answer:
The correct answer is: he lacked the mental capacity to enter into the contract.
Explanation:
A person may ratify a contract that he or she established while intoxicated after becoming sober, and therefore become fully responsible for it. Though, if that person wants to reject the contract, proof of mental lack of capacity must be provided to dissolve the contract and any responsibility inherent.
Answer:
the inventory turnover is 11
while the average days outstanding is 33 days
Explanation:
<u>inventory turnover:</u>
the amount of times the inventory rotetes (is being sold) during the period
660,000/60,000 = 11
The company sold his invenotry 11 times
<u>days outstanding :</u>
time to sale the entire inventory
if it rotates 11 times per year and the year has 365 days then:
365/11 = 33.18 = 33days
