Some financial experts recommend people create their personal budgets as follows: 50% on

"A customer contributed $50,000 to a variable annuity contract. The account value has grown over the years and the NAV is now $7

makvit [3.9K]

Answer: $20,000 of the distribution is taxable and $5,000 is not taxable

Explanation:

The options to the question are:

A. The entire $25,000 distribution is not taxable

B. $5,000 of the distribution is taxable and $20,000 is not taxable

C. $20,000 of the distribution is taxable and $5,000 is not taxable

D. The entire $25,000 distribution is taxable.

From the question, we are told that a customer contributed $50,000 to a variable annuity contract and that the account value has grown over the years and the NAV is now $70,000.

We are further told that the customer is now age 60, and takes a lump-sum distribution of $25,000 to pay for expenses. This indicates that there will be tax deductible in the amount of :

= $70000 - $50000 = $20,000. It should also be noted that $5000 won't be taxed.

4 0

4 years ago

If the market price 'Pmkt' is above the price 'P0', then quantity supplied is_________ equal to greater than quantity demand

Evgen [1.6K]

The quantity supplied at this level of price is less than the quantity demanded and therefore the market is in shortage situation.

<u>Explanation:</u>

If the current price of the market is above the price P0, then the level of the quantity supplied of the good is less than the level of quantity demanded of that good at this level. With the less quantity supplied, there will be a situation of shortage of the quantity of goods in the market.

6 0

3 years ago

Creek Corporation had $210,000 of active income, $45,000 of portfolio income, and a $230,000 passive activity loss during the ye

Mekhanik [1.2K]

Answer:

given statement is false

Explanation:

given data

active income = $210,000

portfolio income = $45,000

passive activity loss = $230,000

deduct passive activity loss = $230,000

solution

as per Topic Passive Activities

we know that Losses and Credits in IRS state here that Loss from passive activity is not allowed for current year

and here this loss will be carry forward to the next taxable year

as a similar rule is applicable to give credits from passive activities

so that given statement is false

7 0

3 years ago

Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and

drek231 [11]

Answer: Demand is Unit - Elastic over this price range.

Explanation:

When total revenue remains the same over various price level then the demand curve is unitary elastic.

Unit-Elastic demand - It depicts a demand curve which is perfectly responsiveness to changes in cost. That is, the amount of demand changes as indicated by a similar percentage changes in prices.

A demand curve with an elasticity of 1 is called as unitary elasticity of demand.

5 0

3 years ago

Read 2 more answers

An auditor ordinarily sends a standard confirmation request to all banks with which the entity has done business during the year

Virty [35]

Answer:

A. seek information about loans from the banks.

Explanation:

A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.

Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.

An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.

An auditor ordinarily sends a standard confirmation request to all banks with which the entity it is auditing has done business during the year under audit, regardless of the year-end balance. One purpose of this procedure is to seek information about loans from the banks so as to examine and verify the amount that was loaned by the bank to the business entity, as well as comparing the figures (values) to that on the balance sheet.

3 0

3 years ago