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Juliette [100K]
3 years ago
15

Richard's father, Joseph Leder, died in 2014 and was insured by a $1,000,000 policy purchased in 2011 (within three years of his

death). Richard's mother was the applicant-owner and beneficiary. Joseph Leder signed as the insured. Monthly premium payments ($3,900) were paid by a corporation wholly owned by Joseph. Was the life insurance included in the estate of Joseph?
I. Yes, it was included because the corporation paid the premium.
II. Yes, it was included because Joseph died within three years of the policy issue.
III. No, the policy was excluded from Joseph's estate.
IV. No, the corporations can pay premiums for their key employees, and the policies will always be excluded from their estates.
A. I
B. I, II
C. III
D. III, IV
E. IV
Business
1 answer:
Lady bird [3.3K]3 years ago
5 0

Answer:

C) III

  • III. No, the policy was excluded from Joseph's estate.

Explanation:

It doesn't matter who pays the policy's premiums, what matters is who is the beneficiary of the policy. If the proceeds of the policy are paid to the insured's estate, then they are part of it, but if the proceeds are paid to another beneficiary, then they are not included in the estate.

Since Joseph's wife was the owner and beneficiary of the policy, the proceeds will be paid directly to her. The advantage here is that proceeds from the life insurance policy  are not taxed as income, but if Joseph's state was larger than $5.43 million, then estate taxes might apply.

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Managers often use a(n) _____ approach when making organizational decisions - using financial performance such as profit as the
Studentka2010 [4]

Managers often use a(n) utilitarian approach when making organizational decisions - using financial performance such as profit as the best definition of what constitutes an ethical choice for the company.

<u>Explanation:</u>

When decisions are taken by taking benefits and the costs that are associated with stakeholders into consideration is an utilitarian approach. The main thing that is considered in this approach for taking any decision is consideration of the outcome and net result of the action that is to be taken.

It aims in taking an action that has greater good for many number of people and less harm for lesser number of people. It considers both the people who gets benefits and those people who suffer from the decision. It mainly focus on choosing an alternate that is more ethical and produces a good balancing of benefits than harm.

8 0
3 years ago
If a competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $24 per bushel and the margin
Dmitrij [34]

Answer:

reduce output

Explanation:

The marginal cost ($26) is greater than the marginal revenue ($25). In order to maximise profit, marginal cost should he reduced up to the point where marginal cost equals marginal benefit.

A firm should shutdown, reduce production to zero if average variable cost is greater than price but in this question, the firm shouldn't shut down since price ($25) is greater than average variable cost ($24).

I hope my answer helps you

5 0
3 years ago
The following totals for the month of April were taken from the payroll register of Magnum Company. Salaries $12,000 Social Secu
Novosadov [1.4K]

Answer:

d. credit to Salaries Payable for $8,600

Explanation:

<em>The journal entry would be as follows.</em>

Magnum Company

Payroll Journal

Particulars                            Debit                    Credit

Salaries                       $12,000  Debit

Federal Income taxes withheld                       2,500 Credit

Social Security & Medicare taxes withheld      900 Credit

Salaries Payable                                               $8,600 Credit

Unemployment taxes are paid by the employer . They are not deducted from the employees' wages . They include both the federal and state taxes.Social Security & Medicare taxes withheld $ 900 include the  Social Security & Medicare taxes  $ 900.

6 0
3 years ago
Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 20% of the next month's sales.
Colt1911 [192]

Answer:

The number of units that would appear in June's production budget are 297000 units.

Explanation:

The production in June will contain 80% units that relates to June's budgeted sales and 20% units that relate to July's budgeted sales. Thus, the number of units that are to be produced in June are:

June's Production = 0.8 * 295000 + 0.2 * 305000 = 297000 units

Thus, in June, 297000 units will be produced.

3 0
3 years ago
Read 2 more answers
On March 31, 2019, Brodie Corporation acquired bonds with a par value of $400,000 for $425,800. The bonds are due December 31, 2
icang [17]

Answer:

1. March 31, 2019

Dr Investment in held-to-maturity debt securities

$413800

Dr Interest income $12,000

Cr Cash $425800

2. June 30, 2019

Dr Cash $12,000

Cr Investment in held-to-maturity debt securities

$300

Cr Interest income $11700

3. December 31, 2019

Dr Cash $24000

Cr Investment in held-to-maturity debt securities

$600

Cr Interest income $23400

2. Assets overstated

Profit overstated

Explanation:

1. Preparation of the journal entries for Brodie to record the purchase of the bonds and the first two interest receipts.

1. March 31, 2019

Dr Investment in held-to-maturity debt securities

$413800

Dr Interest income $12,000

(400000*12%*3/12)

Cr Cash $425800

(To record the purchase of held-to-maturity securities)

2. June 30, 2019

Dr Cash $12,000

(400000*12%*3/12)

Cr Investment in held-to-maturity debt securities

$300

[($12,000/10)*3/12]

Cr Interest income $11700

($12,000-$300)

(To record the interest and amortization)

3. December 31, 2019

Dr Cash $24000

(400000*12%*6/12)

Cr Investment in held-to-maturity debt securities

$600

[($12,000/10)*6/12]

Cr Interest income $23400

($24,000-$600)

(To record the interest and amortization)

2. Based on the information given assuming Brodie failed to SEPARATELY RECORD THE INTEREST AT ACQUISITION, the errors that would occur in the company’s financial statements would be OVERSTATED ASSETS in the balance sheet and the PROFIT would as well be OVERSTATED.

6 0
3 years ago
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