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omeli [17]
3 years ago
14

Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $42,000 to her employer's quali

fied pension fund. She elects to receive her retirement benefits as an annuity of $3,000 per month for the remainder of her life. The number of anticipated monthly annuity payments from the IRS table is 210.
Click here to access Exhibit 4.1 and Exhibit 4.2.

a. Assume that Pam retires in June 2015 and collects six annuity payments this year. What is her income from the annuity payments in the first year?
$ .__________________

b. Assume that Pam lives 25 years after retiring. What is her income from the annuity payments in the twenty-fourth year?
$ ._______________

c. Assume that Pam dies after collecting 160 payments. She collected eight payments in the year of her death. What are Pam's income and deductions from the annuity contract in the year of her death?
Income from the annuity payments: $ ___________________
Loss deduction: $ __________
Business
1 answer:
storchak [24]3 years ago
5 0

Answer:

Explanation:

Income from the annuity payments in the first year?

Exclution per payment = Total contribution to pension fund/ Number of anticipated monthly annuity payments = 42,000/210 = 200

Collects payments in 2015 = 6*3,000=18,000

Exclusion for capital recovery = 6*200 = 1,200

Net Income = 18,000-1,200 = 16,800

What is her income from the annuity payments in the twenty-fourth year?

3,000*12 = 36,000

What are Pam's income and deductions from the annuity contract in the year of her death?

Income from annuity payments = 3000 x 8 months = 24000

Loss deductions = 3000 x 4 months = 12000

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3 years ago
Determine the capitalized cost of a permanent roadside historical marker that has a first cost of $75,000 and a maintenance cost
densk [106]

Answer:

The capitalized cost is $ 84,667.20

Explanation:

First of all please note that the cost of $ 75,000 is already the present cost.

The cost of $3200 which occurs every 3 years can be converted into a value using factor A/F for one life cycle.

The capitalized cost then can be calculated as follows :

CC = $ 75,000 + $ 3200(A/F, 10%, 3 years)/interest

CC = $ 75,000 + $ 3,200(0.3021)/0.1

CC = $ 75,000 + $ 9,667.2

CC = $ 84,667.20

6 0
3 years ago
6. What do you pay for a twelve-ounce can? What are the real social costs of producing a can of Coke – in terms of water, power
VladimirAG [237]

Answer and Explanation:

To pay for a twelve ounce can it costs between 50 cents to a dollar. The social costs of producing a can coke, in which 9 liters of fresh water is used which effects fresh water supply on earth due to its contamination. The cost of making coke :costs more higher, where it has to maintain its employees, buildings, its road transportation, garbage disposal, and many more. People who are living near the coke plant building pays all these costs, and all people pays a equal part as it is taking from earth.

4 0
3 years ago
Compass Inc. purchased 1250 bags of insulation, on account, from Glassco Inc. The bags of insulation cost $5.50 each. Compass pa
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<u>Solution and Explanation:</u>

<u>Journal entry to record the purchase the bags of insultaion.</u>

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                 Inventory                                       $6875

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<u>entry to record the payment for shipping</u>

                Inventory                                          $320

                   cash                                                                           $320

( paid shipping charges for bags to warehouse)

<u>entry for return of the defective bags</u>

              accounts payable                                 $275

                   Inventory                                                                       $275

( returned defective bags to glassco Inc)

<u>To record the payment for the bags kept by compass.</u>

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            cash                                                                                           $6600

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4 0
3 years ago
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Dmitriy789 [7]

Answer: Her income elasticity of demand for cottage cheese is <em><u>0.3333</u></em> making it a <em><u>normal and necessary</u></em> good.

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\mathbf{YED = \frac{percentage change in demand}{percentage change in income}}

The percentage change in income is given as 60%. We calculate the percentage change in quantity demanded as follows:

\mathbf{percentage change in quantity demanded = \frac{Q_{1}-Q_{0}}{Q_{0}}}

\mathbf{percentage change in quantity demanded = \frac{12-10}{10}}

\mathbf{percentage change in quantity demanded = 0.2}\\

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\mathbf{YED = \frac{0.20}{0.60}}

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Since the income elasticity is between 0 and 1 we can also conclude that cottage cheese is also a essential good or a necessity.

7 0
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