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Ray Of Light [21]
2 years ago
14

The owner of a life insurance policy has decided to surrender the life insurance policy to the insurer. Since inception of the l

ife insurance contract, the owner has paid premiums of $100,000 and received cash policy dividends equal to $20,000. If at the surrender date, the owner receives a cash payment of $140,000 from the insurer, what is his gain/ loss subject to income tax on the life insurance policy?
Business
1 answer:
svet-max [94.6K]2 years ago
8 0

Answer:

$60,000

Explanation:

Data provided in the question:

Premiums paid = $100,000

Cash policy dividends received = $20,000

Cash surrender value = $140,000

Now,

The owners adjusted basis in the property

= Premiums paid  - Cash policy dividends received

= $100,000 - $20,000

= $80,000

Therefore,

The gain on the policy = Cash surrender value -  owners adjusted basis

= $140,000 - $80,000

= $60,000

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Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2017 Dec. 31, 2016 Current ass
stiks02 [169]

Answer:

Liquidity measures for the year 2017 are as under:

Current Ratio = 1.5  

Working Capital = $100,000  

Acid Test Ratio = 0.95  

Accounts Receivables Turnover = 10 times  

Inventory turn over = 4 times  

Explanation:

<u>Current Ratio</u>

        Current Ratio = Current Assets ÷ Current Liabilities

                          <u>Dec 31, 2017</u>                                     <u>Dec 31, 2016 </u>

                      $300,000 ÷ $200,000                   $245,000  ÷ $155,000  

Current Ratio                 1.5                                                  1.6  

<u>Working Capital</u>  

       Working Capital = Current Assets – Current Liabilities

                          <u>Dec 31, 2017</u>                                     <u>Dec 31, 2016 </u>

                      $300,000 – $200,000                   $245,000  – $155,000

Working Capital         $100,000                                     $90,000  

 

<u>Acid Test Ratio</u>

        Acid Test Ratio = (Current Assets – Inventory)  ÷ Current Liabilities

                          <u>Dec 31, 2017</u>                                     <u>Dec 31, 2016</u>

($300,000 – $110,000) ÷ $200,000     ($245,000 – $90,000) ÷ $155,000

Acid Test Ratio           0.95                                                1.00  

 

<u>Accounts Receivables Turnover Times</u>  

Accounts Receivables Turnover = Credit Sales ÷ Average Accounts Receivables

Average Accounts Receivables = (Opening Accounts Receivables + Closing Accounts Receivables) ÷ 2

Average Accounts Receivables = ($55,000 + $95,000) ÷ 2 = $75,000

Accounts Receivables Turnover = $750,000  ÷ $75,000 = 10 Times

<u>Inventory Turnover Times</u>

Inventory Turnover = Cost of Goods Sold ÷ Average Inventory

Average Inventory = (Opening Inventory + Closing Inventory)  ÷ 2

Average Inventory =  ($110,000 + $90,000)  ÷ 2 = $100,000

Inventory Turnover =  $400,000  ÷ $100,000 = 4 Times

 

5 0
3 years ago
The rate of return required by investors in the market for owning a bond is called the:_______
VashaNatasha [74]

The rate of return required by investors in the market for owning a bond is called the <u>Yield to </u><u>maturity</u>

A bond's coupon rate is the rate it pays each year, and yield is the return it makes. A bond's coupon is expressed as a percentage of its face value. Face value is simply the face value of the bond or the value of the bond as quoted by the issuer.

A bond's current yield is the annual income from the investment, including interest and dividend payments, divided by the security's current price. Yield to maturity (YTM) is the expected total return from holding a bond to maturity.

The current yield is the annual rate of return on investment (interest or dividend) divided by the security's current price. This indicator looks at the current price of a bond rather than its face value.

Learn more about maturity here brainly.com/question/26376004

#SPJ4

6 0
2 years ago
Salespeople at Janie's Cookie Company want to draw the attention of their customers through blogs, Twitter, and LinkedIn, rather
Serga [27]

Answer:

D. Inbound Marketing

Explanation:

When a company uses blogs and social media, to draw the customers through content. And this is called Inbound Marketing, a passive, subtle and digital way to market.

7 0
2 years ago
Justin and Edwardo were hired by the same network support firm. One year later, Edwardo receives a promotion to team leader. Jus
alexira [117]

Answer:

Team skills

Explanation:

Team skills are the qualities that enable one to work well with colleagues in projects and other collaborations. Having teamwork skills gives one the ability to work amicably with fellow workers, superiors, and clients.

Teamwork involves assisting the team in achieving its objectives quickly and efficiently. Employers favor employees who can lead a well-gelled team. Eduardo got the promotion because he was better with the team.

Some qualities of teamwork skills include.

  1. Communication skills
  2. Support skills
  3. Problem-solving skills
  4. Conflict resolution skill
  5. Listens and feedback skill
7 0
2 years ago
You have an insurance policy with a $300 premium and a $500 deductible. How much should you expect to pay the insurance company
Aleksandr [31]
<h3>Hello there!</h3>

Your question asks how much you would be paying for insurance with the information given.

<h3>Answer: $300</h3>

The reason why your answer would be $300 is because that's the premium that you would be paying for. The "premium" means the amount you're paying for coverage. The premium could have different coverages that make up the price. The insurance would cover the liabilities that you might have.

People tend to get confused with deductibles. You don't pay monthly for deductibles. Deductibles are a payment that someone needs to pay before an insurance company starts paying for your needs that your coverage provides. For example, if I brake a bone, I would first pay the $500 deductible before the Insurance company starts covering my costs. This is the ensure that the insurance company gets some type of money before they start helping you.

<h3>I hope this helped you out!</h3>
8 0
3 years ago
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