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emmainna [20.7K]
3 years ago
9

George is 73 years old and retired. He was told that he should withdraw $15,000 from his 401(k) to meet his required minimum dis

tribution. George does not feel like he needs the money, so he decides not to take his withdrawal. Which of the following describes the taxable consequence of his decision?A : If George can prove to the IRS that he does not need to take a required minimum distribution to pay his bill, he will not have to pay taxes.B : George will have to pay $15,000 in taxes because when it comes to required minimum distributions if you do not use it, you will use it.C : George will have to pay $1,500, which is the 10% penalty for failing to take the required minimum distribution.D : George will have to pay $7,500, which is the 50% tax on the amount that he should have taken for his required minimum distribution.
Business
1 answer:
dusya [7]3 years ago
8 0

Answer:

D : George will have to pay $7,500, which is the 50% tax on the amount that he should have taken for his required minimum distribution.

Explanation:

Currently, Required Minimum Distributions (RMDs) have been suspended for the entire 2020 due to CARES Act. But under normal circumstances, Roger would be penalized and 50% of the RMD not retired would be withheld by the IRS. That is why people generally withdraw the RMDs even if they do not need them.

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On January 1, 2021, Clark Corporation sold an $800,000, 7% bond issued for $767,320. The bonds are to pay interest quarterly and
serg [7]

Clark Corporation's total cost of borrowing $800,000, 7% bonds issued for $767,320 for 5 years is $344,702.87.

<h3>What is the total cost of borrowing?</h3>

The total cost of borrowing includes the bond discounts and the interest expenses.

In this case, the total cost of borrowing is $344,702.87.  However, this is only the pre-tax cost.

<h3>Data and Calculations:</h3>

Face value = $800,000

Interest rate = 7%

Bonds proceeds = $767,320

Bonds discounts = $32,680 ($800,000 - $767,320)

Maturity period = 5 years

Market rate = 8%

Interest payment = quarterly

Quarter interest expense = $14,000 ($800,000 x 7% x 1/4)

N (# of periods) = 20 (5 x 4)

I/Y (Interest per year) = 8%

PMT (Periodic Payment) = $14,000 ($800,000 x 7% x 1/4)

FV (Future Value) = $800,000

<u>Results:</u>

PV = $767,297.13

Sum of all periodic payments = $280,000 ($14,000 x 20)

Total Interest = $312,702.87

Total cost of borrowing = $344,702.87 ($32,680 + $312,702.87)

Thus, Clark Corporation's total cost of borrowing $800,000, 7% bonds issued for $767,320 for 5 years is $344,702.87.

Learn more about the total cost of borrowing at brainly.com/question/25599836

6 0
2 years ago
A positive problem may be viewed as a(n
elena-14-01-66 [18.8K]

Answer:

opportunity

Explanation:

hope this helps!

6 0
3 years ago
Camrio Consultants conducted a meeting to make a decision about continuing a business contract with a client. The manager presid
goldenfox [79]

Answer:

A learning and effectiveness paradigm is not in place

Explanation:

Managers are more likely to employ people of like manners that will always follow the dame line of thought with them , an act that is not seen as a good practice as diversity of human resources can always bring out the best practice.

One of the tools of managing diversity towards achieving plurality  in organisation is a learning and effectiveness paradigm.

It is a tool used in integrating diverse personality , beliefs and attitudes in an organization.

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3 years ago
Identify each of the following as relating to the control environment, control procedures, or information and communication:
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Answer and Explanation:

a. Organizational structure = Control environment

Top management always keep organizational structure Therefore, it is a part of the environment of control.

b. Report of company's conformity with environmental laws and regulations = Information and communication

Company's compliance reports are confidential accounting information.

c. Proofs and security measures = Control procedures

Proofing and monitoring controls ensure company is achieving its target.

5 0
3 years ago
What are the factors of production
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Factors of production are the resources people use to produce goods and services;

They are four categories: land, labor, capital, and entrepreneurship.
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2 years ago
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