Answer:
$25,000
Explanation:
Data provided in the question
First payment will occur in a year = $1,000
Growing rate = 8%
Interest rate = 12%
So, the today value of the bequest is
= (First payment will occur in a year) ÷ (Interest rate - growing rate)
= ($1,000) ÷ (12% - 8%)
= ($1,000) ÷ (4%)
= $25,000
Hence, the today value of the bequest is $25,000
Answer:
The customer could buy call options and sell put options.
Explanation:
A call option gives you the right to buy a stock at a certain price. If the price of a stock rises (as the investor believes), the call option can be exercised and a profit will be made.
A put option gives you gives you the right to sell at a certain price. If the price of a stock rises (as the investor believes), the put option will not be exercised since the sales price will be lower than the market price.
Answer:
Option B- He acted in good faith.
Explanation:
The person who is trading with the other party owes the duty of care which is well stated in the negligence act. However in this case we saw that though the law was unclear but still the CEO acted in best interest of the public at large by consulting the attorney to shed light on the issue. Remember law is ethically minimum that is desired but in this situation the CEO was committed to comply with law that's why he consulted attorney. So saying that he acted in good faith is the best defense in the court.
Answer: The correct answer is "a) true".
Explanation: In order for a taxpayer to deduct the loss of a commercial activity of which he is the owner, she must prove that she is materially involved in the conduct and direction of the business, since if she does not prove it, it is considered a passive activity from which she cannot deduct the loss.