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miss Akunina [59]
3 years ago
10

A husband and wife are self-employed and have 3 children, ages 4, 7, and 9. They have a combined income of $300,000. They wish t

o open Coverdell ESAs for each of their children to pay for qualified education expenses. Which statement is TRUE

Business
1 answer:
Lubov Fominskaja [6]3 years ago
6 0

Answer:

The correct answer is they are prohibited from opening an account for each child because they earn much.

Note: Kindly find an attached inage of the complete question stated here.

Sources: the image or pictures was researched from Quizlet and Course hero

Explanation:

Solution

Now,

The answer to the question given as follows:

(a) False: The contribution made to ESAs is not tax-deductible. Also, they are not allowed to contribute to ESAs due to high income.

(b) False: The contribution made to ESAs is not tax-deductible but they are not allowed to contribute to ESAs due to high income.

(c) True: Since they have a combined income of $300,000, therefore they are prohibited to open an account for each child under ESAs.

(d) False: There is no such condition that ESAs accounts cannot be opened by self-employed individuals.

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Answer: A. the company will be willing to pay a different amount for this resource.

Explanation:

The upper limit for the resource was 18 and anything up to 18 would have attracted the same shadow price (price company estimated it was willing to pay for access to this resource).

The access was increased past this limit however to 18.01. The company therefore will now have more access to the resource and so will be willing to pay a different amount for the resource.

4 0
2 years ago
DeBondt and Thaler (1985) found that the poorest-performing stocks in one time period experienced __________ performance in the
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Answer:

DeBondt and Thaler (1985) found that the poorest-performing stocks in one time period experienced <em>good</em> performance in the following period and that the best-performing stocks in one time period experienced <em>poor</em> performance in the following time period.

Explanation:

DeBondt and Thaler carried out a study that examined stocks of 35 worst and best performing firms over a previous five-year period.The study showed that over the following three-year period, the firms that were previously performing poorly performed better than the former best performing firms, by an average of 25%.This reversal in the fortunes of stocks of firms in the following period is called the Reversal Effect.

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3 years ago
The transparency of competitive advantage refers to the extent to which
kolbaska11 [484]
The transparency of a competitive advantage refers to the extent to which COMPETITORS CAN IDENTIFY THE REASONS FOR THE COMPETITIVE ADVANTAGE OF ANOTHER COMPANY.
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7 0
3 years ago
Stock Z is trading at $50 today. In one year, the value will go either up to $62.50 or down to $40. A call option on Z with exac
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Answer:

0.33

Explanation:

Delta = (Cu – Cd)/(Su – Sd)Cu

= 62.50 – 55 = 7.50

Cd = 0

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5 0
3 years ago
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