Answer:
e. $225,000.
Explanation:
Since Bob Shockey pays interest as in accrues, the amount the beneficiary will receive if he dies before the debt is repaid will be the cash value of his life insurance policy minus amount borrowed to send his daughter to private college. This can be calculated as follows:
Amount to receive by beneficiary = $250,000 - $25,000 = $225,000
Therefore, his beneficiary will receive $225,000.
Choice of a marriage partner does not form part of personal finance. Ideally, personal finance talks about retirement planning, investments, budgeting, cash flow or any other things that may affect financial stability.
Answer:
$60,000
Explanation:
Since Bailey Co. changed their accounting for insurance expense from the cash-basis to the accrual-basis in the current year, and in January of the prior year, Bailey recorded insurance expense of $240,000 for the cash purchase of a four-year insurance policy.
Bailey should report the insurance transaction in the current year's financial statements of an amortization of the insurance expense over the four year period, and take account the portion that pertains to the current year.
Therefore = $240,000 / 4 years = $60,000 per year
<span>This can create a shortage in the market. This means that there is too much demand for a good and not enough product to cover it. This creates restrictions on the products that people are allowed to buy, which decreases the profit potential.</span>
Answer:
Baltimore Inc.
a. Total taxable income = $47,200
b. Income tax payable = $11,800
c. Income tax expense = $11,250
d. Net income = $33,750
Explanation:
a) Data and Calculations:
GAAP determined pretax income = $45,000
Add nondeductible fines 5,000
Less exempt municipal interest revenue 2,800
Total taxable income $47,200
Income tax (25%) 11,800
Income tax expense:
GAAP determined pretax income = $45,000
Income tax (25%) 11,250
Net income $33,750
b) The differences between the GAAP determined pretax income and the tax determined taxable income are due to permanent differences (not temporary). This implies that there are no deferred tax assets and liabilities and no recoveries from deferred taxes. However, in reporting its financial performance for the year, Baltimore Inc. still has to comply with the GAAP rules and not the tax rules.
