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k0ka [10]
3 years ago
9

"Your customer, age 68, who has an IRA account at your firm valued at $500,000, passes away. The customer leaves the account to

his wife, age 62, who does not work. She needs current income and wishes to receive payments over the longest time frame possible. You should advise the spouse to:"
Business
1 answer:
vredina [299]3 years ago
5 0

Answer:

My best advice for the spouse would be to designate herself as the new account owner, and since she is 62, she can start taking regular distributions from it. Any distributions that she takes will be taxed as ordinary income (the same rule would have applied to the late husband).

Explanation:

If she had her own IRA account (which is doubtful since she doesn't work), she could also roll over her late spouse's balance into her own account.

The wife's third option would be to treat herself as a beneficiary, not the owner or spouse, but that would only complicate things and result in higher costs.

You might be interested in
Knowledge Check 01 Feline Watch Company makes wrist watches out of silver metal sheets. Feline sold 200 watches in the month of
anastassius [24]

Answer:

the number of watches to be produced in July is 500

Explanation:

The calculation of the number of watches to be produced in July is given below;

Units Expected to be sale 400  

Add: Desired ending inventory 300 (50% of 600)

Total available 700  

Less: Beginning Inventory -200  

Units to be produced 500

Hence, the number of watches to be produced in July is 500

6 0
3 years ago
LO 2.1Which of the following is the primary source of revenue for a service business?
malfutka [58]

Answer:

providing intangible goods and services

Explanation:

A service business is an organisation that provides services.

Examples of service businesses are airlines, insurance companies, and hospitals.

I hope my answer helps you

3 0
3 years ago
Read 2 more answers
Geneva needs additional capital to launch her business but does not want to share management responsibility with partners. Neith
Talja [164]

Answer:

The answer is: C) S corporation

Explanation:

Geneva should choose an S Corporation. In my opinion she should do it because corporate income, losses, deductions, and credits are passed through to its shareholders, while it can be managed like a normal corporation.

If she chooses a Limited Liability Partnership she would still have to share management responsibility with her partners and C Corporations are heavily taxed. If she had enough money she could start a sole proprietorship business, but she doesn't have enough money.

5 0
3 years ago
When the price of a bond is above the equilibrium price, there is excess ___ in the bond market and the price will ___.
Setler [38]
C. When price is too high, people are less willing to purchase the good, so demand is lower when price is higher. (Demand curve is always slopping downwards as a result). As the price is high, producers are more willing to sell their goods (I.e. bonds) which will give them more money per unit good being sold. This will result in Quantity Supplied (Qs) being greater than Quantity Demanded (Qd), and so, there is a surplus of bonds in the market. This will cause a downward pressure to apply on price, so that Qd = Qs eventually.

Hope this helps!
8 0
3 years ago
oas on a callable bond is 75 basis points using on-the-run treasuries as benchmark rates. which is correct?
Rina8888 [55]

The correct statement is option C. OAS reflects the credit risk and liquidity risk of the bond over the treasury benchmark rates. Read below about a callable bond.

<h3>What is a callable bond?</h3>

A callable bond is a type of bond that permits the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. Consequently, the said point which is basis is 75.

Therefore, the correct answer is option C. OAS reflects the credit risk and liquidity risk of the bond over the treasury benchmark rates.

learn more about callable bond: brainly.com/question/24129882

#SPJ11

4 0
2 years ago
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