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dexar [7]
3 years ago
15

How much of the following is taxable? a. Cheline, an actress, received a $6,400 gift bag for attending the Academy Awards Ceremo

ny during 2018.b. Jon received a gold watch worth $660 for 25 year of service to his accounting firm (not a qualified award).c. Kerry won $1,000,000 in her state lottery.d. Deborah is a professor who received $30,000 as an award for her scientific research from the university that employs her.
Business
1 answer:
Bingel [31]3 years ago
6 0

Answer:

A. $6,400

B. $240

C. $1,000,000

D. $30,000

Explanation:

Requirement A, C, and D:

Prizes and awards are taxable income for a taxpayer. Any awards or prizes won from the lottery or television should be added to the income. Therefore, the Winning lottery is a taxable income for Kerry, $1,000,000. Again, Receiving the award for scientific research is also taxable income for Deborah, $30,000.

The winning award for accomplishments is also a taxable income. So, receiving a $6,400 worth gift bag is a taxable income for Cheline.

Requirement B:

There is an exception if the award is for tangible property and a long-years of accomplishment. At that time, the taxpayers will be excluded from some part of the necessary amounts to be paid as tax. If it is not a qualified award, the exclusion will be $400. If it is qualified, the tax exclusion is 1,600. Since Jon received a gold watch for 25 years of service and the gift is not qualified, he has to pay tax for $(660 - 400) = $240.

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Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 5% therea
AleksAgata [21]

Answer:

The value of the stock = $19.64

Explanation:

According to the dividend valuation model, <em>the value of a stock is the present value of the expected future cash flows from the stock discounted at the the required rate of return.</em>

Year                     Workings                        Present value(PV)

1                 $1 × (1.22)  × 1.11^(-1)  =                     1.10

2                 $1 × (1.22)^2 ×(1.11)^(-2) =                1.21

3                 $1 × ((1.22)^2 × (1.05))/0.11-0.05) = 21.35 ( PV in year 2 terms)

PV (in year 0) of Year 3 dividend  = 21.35 × 1.11^(-2)

                                      = 17.33 (see notes)

<em>The value of the stock</em> = $1.10+ $1.21 + 17.3

                                      = $19.64

Notes:

<em>Note the growth applied to year 3 dividend gives the PV in year 2 terms. So we need to re-discount again to year 0.</em>

<em />

The value of the stock = $19.64

                                     

8 0
3 years ago
Omar is covered by a disability income policy. he is hurt while performing an occupation more hazardous than the occupation list
Alex73 [517]

I believe the answer is: Reduce the benefit level

If the individual performing an occupation more hazardous than the occupation listed in his policy, The insurance company had the right to perceive that the individual is involving himself in necessary risk, which provide them with a legal ground to reduce his benefit level.

6 0
3 years ago
A business issued a 90-day, 9% note for $70,000 to a creditor on account. Illustrate the effects on the accounts and financial s
SSSSS [86.1K]

Answer:

The computation is shown below:

Explanation:

The journal entries are shown below:

a. Account payable $70,000

           To Notes payable $70,000

(Being the issuance of the note is recorded)

b. Note payable $70,000

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              To Cash $71,575

(Being the payment of the note at maturity date including interest is recorded)

The computation is shown below:

= $70,000 × 9% × 90 days ÷ 360 days

= $1,575

We assume 360 days in a year

Now the effects on the accounts and the financing statement for issuance of the note is shown below:

Balance sheet

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No effect = Account payable - $52,000 + No effect  No effect + no effect

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7 0
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It is important, therefore, that there is an accurate internal control over the businesses and the corruption-related indexes and an active and regular monitoring of data essential to the business.

It is also important to have policies and an internal culture aimed at maintaining ethical values, so that the company is supported by positive and ethical values ​​that will lead to a good positioning in the market.

4 0
3 years ago
The government increases taxes. What might be a reason for this change in fiscal policy?
Crank
A; a deficit due to improving nationwide public transportation. Surplus in this case means that we have left over money.
8 0
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