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MariettaO [177]
2 years ago
15

6. Taxpayer ("T") a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company for $100,000 in

2019. The terms of the annuity were that the company would pay T $5,000 a year to T for the rest of T’s life. How much income will T include in T’s personal income tax return as a result of receiving the $5,000 payment
Business
1 answer:
pochemuha2 years ago
5 0

Answer:

In the year 2020 --- Not taxable Hence -Nil

In the year 2050----Taxable. Hence $5000

Explanation:

Assumed that the tax payer purchased the annuity from Tax paid Income'.

In this case the tax payers income of $5000 is partly taxable . That is the percentage of the payment that's considered a return on your initial investment will not be taxable. the rest, which is your gain on the investment, will be taxed. In this case for the first twenty years($100000/$5000) =20 years will not be taxable. Hence

In the year 2020 --- Not taxable Hence -Nil

In the year 2050----Taxable. Hence $5000

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Suppose that the reserve ratio is 10% when the Fed sells $25,000 of U.S. Treasury bills to the banking system. If the banking sy
andre [41]

Answer:

d $250,000; subtracted from

Explanation:

Sales of U.S. Treasury bills to the banking system by the Fed is a contractionary monetary policy that will reduce the money supply.

Based on the money supply multiplier, the amount of the reduction in money can be calculated as follows:

Amount of reduction in money supply = $25,000 / 10% = $250,000.

Therefore, if the banking system does NOT want to hold any excess reserves, <u>250,000</u> will be <u>substracted from</u> the money supply.

7 0
2 years ago
A company has a pension liability of $440,000,000 that it must pay in 29 in years. If it can earn an annual interest rate of 4%,
kodGreya [7K]

Answer:

a. $141,086,622.46.

Explanation:

Calculation for how much must it deposit today

Using this formula

Present Value = Future Value / [ ( 1 + r) n]

Where,

Future Value = 440,000,000

r = rate of Interest= 4%

n = Number of years = 29

Let plug in the formula

Present Value = 440,000,000 / [ ( 1 + 0.04)29]

Present Value= 440,000,000 / 3.1186514519

Present Value= $141,086,622.46

Therefore the amount it must deposit today to fund this liability will be $141,086,622.46

5 0
2 years ago
Ute Co. had the following capital structure during Year 1 and Year 2: Preferred stock, $10 par, 4% cumulative, 25,000 shares iss
Reika [66]

Answer:

Basic Earnings Per Share = $2.45

Explanation:

Expectation: Calculate the Basic Earnings per Share

First, what is the net income for the year= $500,000

Preference dividend = $16

However, since the preference share is cumulative and no preference dividend was paid in the first year. It means the preference dividend of $16,000 paid was both for the first and second year

Hence, preference dividend for the second year = 4% x $250,000= 0.04x $250,000= $10,000

As such the Basic earning per share

= (Net income - Preference Dividend for the year 2)/Outstanding common shares

= ($500,000- $10,000)/200,000 shares

=$2.45

3 0
2 years ago
Betz Company's sales budget shows the following projections for next year: Inventory at the beginning of the year was 18,000 uni
Juliette [100K]

Question

Betz Company's sales budget shows the following projections for next year:

Sales in Units: 1st Quarter = 60,000; 2nd Quarter = 80,000; 3rd Quarter = 45,000; 4th Quarter = 55,000

Inventory at the beginning of the year was 18,000 units. The finished goods inventory at the end of each quarter is to equal 30% of the next quarter's budgeted unit sales. How many units should be produced during the first quarter

Answer:

Production budget = 66,000 units

Explanation:

<em>The expected units of a product that a business estimates to manufacture given its sales budget and inventory is known as the production budget. </em>

The production budget can bed determined by adjusting the sales budget for closing and opening inventories.

Production budget = Sales budget +closing inventory - opening inventory

Opening inventory = 18,000

Closing Inventory units = 30% × 2nd quarter budget

Inventory units = 30% × 80,000=

Production budget = 60,000 + 24,000 - 18,000=66,000 units

Production budget = 66,000 units

8 0
3 years ago
Technician a states that the torque-to-yeild method is one of the primary methods of replacing wheel lug studs. technician b sta
vaieri [72.5K]

<span>Wheel lug studs makes the changing of tires easy by creating the ability to hold  and locate the assembly in the changing of tire through lifting both tire onto the studs and also the wheel. The technician that states that torque-to-yield method is one of the primary method in replacing   wheel lug studs is correct. </span>

Wheel studs are threaded fasteners that holds on the wheel and doing re-torque of lug nuts that is fully assembled to the wheel stud is applied, then pull it a few times and seal it to secure the wheel. Then check the torque after a test drive to ensure safety.

Moreover, wheel studs are replaceable; it has two types, the press-in, and screw-in method. Nevertheless, the arc welder method is possible but unlikely to be used.

 

<span> </span>

8 0
3 years ago
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