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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.

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On December 21, 2020, Sage Company provided you with the following information regarding its equity investments. December 31, 20
Sindrei [870]

Answer:

(a) Dec. 31, 2020

Dr Unrealized Holding Gain or Loss- Income $1,610

Cr Fair value adjustment $1,610

(b) During 2021

Dr Cash $10,350

Dr Loss on sale of investment $550

Cr Equity Investment (trading) $10,900

(c) Dec. 31, 2021

Dr Fair value Adjustment $1,100

Cr Unrealized Holding gain or loss - Income $1,100

Explanation:

(a) Preparation of the adjusting journal entry needed on December 31, 2020

Dec. 31, 2020

Dr Unrealized Holding Gain or Loss- Income $1,610

Cr Fair value adjustment $1,610

(b) Preparation of the journal entry to record the sale of the Colorado Co. stock during 2021

During 2021

Dr Cash $10,350

Dr Loss on sale of investment $550

($10,900-$10,350)

Cr Equity Investment (trading) $10,900

(c) Preparation of the adjusting journal entry needed on December 31, 2021

Dec. 31, 2021

Dr Fair value Adjustment $1,100

Cr Unrealized Holding gain or loss - Income $1,100

Calculation for Fair value Adjustment

Cost FV Profit Unrealized Gain (Loss)

Clemson Corp. stock $20,400-$19,390 =$1,010

Buffaloes Co. stock $20,400-$20,900=-$500

Total portfolio $40,800 $40,290 ($510)

Previous Fair value adjustment $1,610

Unrealized Holding Gain $1,100

($1,100-$510)

4 0
2 years ago
The term given to units that represents the number of completed units that is equal, in terms of production inputs, to a given n
SIZIF [17.4K]

Answer:

The answer is EQUIVALENT UNITS (not included as an option).

Explanation:

Equivalent units are the complete units that could have been produced or manufactured during a period of time given the amount of manufacturing inputs (materials, labor) used.

For example, we have 100 nits that are 40% completed in relation to direct labor and direct materials, we could say that we have 40 equivalent units.

4 0
3 years ago
Which of the following is an example of investment (I) Group of answer choices a. new plants and equipment purchased by a firm.
Snowcat [4.5K]

Answer:

A. new plants and equipment purchased by a firm.

Explanation:

Option B is wrong because anything purchased by households cannot be the investment for a firm.

Option C is wrong because inventory is a current asset. Current assets cannot be an investment.

Option A is correct because if a company purchases any non-current assets like plant and equipment, its an investment for them.

3 0
3 years ago
Which of the following is the best way to learn about a company culture?
WARRIOR [948]

Answer:

a on e2020

Explanation:

go it right on the test

3 0
3 years ago
Regarding a broker's commission, the California Business and Professions Code requires that in the sale of residential property
Harrizon [31]

Answer:

The remaining part of the question is:

They are set by each broker individually and may be negotiable between the seller and broker.” This clause must be printed:

1. In not less than 8-point boldface type.

2. In not less than 10-point boldface type.

3. In not less than 11-point boldface type.

4. In not less than 12-point boldface type.

Correct Answer:

2. In not less than 10-point boldface type.

Explanation:

<em>In-order to print the clause, the 10-point boldface type should be the minimum font on which the compensation clause is printed. It would make it easier to read.</em>

4 0
3 years ago
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