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Ray Of Light [21]
3 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]3 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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KATRIN_1 [288]

Answer: im not sure don't use my answer.

Explanation: CAHS CASH CASH

5 0
2 years ago
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Kay’s dog-walking service is a profit-maximizing, competitive firm. Kay walks dogs for $7.50 each. Her total cost each day is $4
devlian [24]

Answer:

Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.

Explanation:

Giving the following information:

Kay walks dogs for $7.50 each. Her total cost each day is $45—she spends $35 a day on gas driving to different neighborhoods, and her liability insurance and other fixed costs average out to $10 per day.

Kay walks five dogs a day.

Income= 7.5*5= $37.5

Total cost= 45

Loss= (7.5)

Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.

6 0
3 years ago
In a mortgage, the amount of money borrowed is called the_______.
Rashid [163]

No answer choices......




In a mortgage, the amount of money borrowed is called the Loan principal, or just a loan.

5 0
3 years ago
Read 2 more answers
An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about
kramer

Answer: Open-ended

Explanation:

Here, in this particular we can state that the given question is an example of an <em>open-ended question</em>. Under this scenario, the question being asked is subjective i.e. what an individual likes least about the textbook shopping. The open-ended questions are referred to as questions that cannot be replied with either a yes or a no.

4 0
3 years ago
Denver Corporation purchased a patent for $405,000 on September 1, 2016. It had a useful life of 10 years. On January 1, 2018, D
natita [175]

Answer:

amount that should be reported for patent amortization expense for 2018 will be $90000.27

Explanation:

given data

purchased patent = $405,000

useful life = 10 years

spent = $99,000

remaining useful life = 5 years

solution

first we get here amortization from September 1, 2016 - January 1, 2018 that is

September 1 - december 31 = \frac{4}{12}  = 0.333333

amortization = (1 + 0.333333) × (405000 ÷ 10)

amortization = $53998.65

and

now we get remaining value before defence

remaining value = $405,000 - $53998.65

remaining value = $351001.35

and

now we get here amount to be reported for patent amortization expense for 2018

amount = ( $351001.35 + $99,000 ) ÷ 5

amount = $90000.27

so amount that should be reported for patent amortization expense for 2018 will be $90000.27

7 0
3 years ago
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