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DedPeter [7]
4 years ago
13

Being undecided on what to do with $100,000 just received on F's policy, decides to leave the proceeds on deposit with the insur

er at interest. The rate being paid is 5%. In one year, what amount will be taxable?
Business
1 answer:
Rom4ik [11]4 years ago
8 0

Answer:

$5,000

Explanation:

If these are death benefit funds then it must be noted that tax is not applicable on the lump sum amount of death benefit but the interests paid on the amount left on deposit with the insurer is taxable. In simple terms, if dividends are left on deposit to earn interest then this interest is taxable!

Interest rate= 5%

Amount= $100,000

Tax= 0.05x100,000

Tax= $5,000

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Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, what is the change in
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Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, $200 t is the change in the firm's value.

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Learn more about tax rate here: brainly.com/question/25791968

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