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Alborosie
3 years ago
13

This year Nathan transferred $1 million to an irrevocable trust established for the benefit of his nephew. The trustee is direct

ed to accumulate income for the next 5 years before distributing the trust corpus to Nathan's nephew. In past years Nathan has made taxable gifts of $6 million and used all unified credit. What is the amount of gift tax, if any, must Nathan remit in 2017? Ignore the annual exception amount of $15,000.
A) 159,500
B) 155,800
C) 155,450
D) Zero- there is a $10 Million exemption equivalent
Business
1 answer:
iren [92.7K]3 years ago
7 0

Answer:

Zero- there is a $10 Million exemption equivalent ( d )

Explanation:

Annual exemption to be ignored = $15000

$1 million  to an irrevocable trust

taxable gifts = $6 million

A) The amount of gift tax Nathan must remit in 2017 ignoring annual exemption

The gift tax must remit in 2017 is zero because there is a $10 million exemption because of the annual exception ( even if the annual exception is ignored ) and  the lifetime benefits on taxable gifts that Nathan has is approximately $11.4 million, hence he wont be remitting any amount on gift tax in 2017

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Integrated Masters Inc. (IMI) is presently operating at 80% of capacity and manufacturing 116,000 units of a patented electronic
balu736 [363]

Answer:

a. $3.13 per unit

b. No

c Yes

Explanation:

The computation is shown below

a. Fixed overhead per unit is

= Fixed overhead ÷ Number of units manufactured

= $363,000 ÷ 116,000 units

= $3.13 per unit      

b. The cost calculation is not appropriate because the fixed overhead per unit is not be involved while calculating the cost

c. Now the acceptance of the offer should be based on total relevant cost which is            

Total relevant cost

= $6.1 + $6.1 + $8.1

= $20.3  

Since the offer is accepted because total relevant cost is less than the offered purchase price i.e $24.50    

       

3 0
3 years ago
HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every yea
Alexus [3.1K]

Answer:

Annual savings = 61,746.

Explanation:

The Net Present Value (NPV) is the difference between the present value (PV) of cash outflows  and PV of cash inflow

At the internal rate of return the PC of annual cash savings will be equal to the investment cost

Initial cost = 211980

PV = annual cash savings = A× (1- (1+r)^(-n)/ r

A=?  r-internal rate of return, 14%, n-number of years- 5

211980 = A  (1- (1.14)^(-5)/ 0.14

211,980 = A× 3.433080969

A= 211,980/3.43308

A= 61746.28619

Annual savings = 61,746.

5 0
3 years ago
Riverbed Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares of $50 par value preferred
masya89 [10]

Answer:

The answer is given below;

Explanation:

 Preference stocks  950*50    Dr.$47,500

 Paid in capital in excess of par-preference shares  Dr.$  13,300                                  

 (64-50)*950

  Common Stocks  1,900*10        Cr.$19,000

  Paid in capital in excess of par-common stocks    Cr.$41,800

   (64*950)-(1900*10)                                        

8 0
3 years ago
Why are us firms moving manufacturing jobs overseas?
inysia [295]
United States based firms are moving manufacturing jobs overseas simply because they can get away with paying workers in foreign countries WAY less than in America. They also do not need to follow the strict labor laws and provide benefits to outsourced employees.
8 0
3 years ago
Which of the following segments of PESTEL analysis includes elements such as tax policies and changes in trade restrictions and
slavikrds [6]

Answer:

A. Political

Explanation:

PESTEL analysis is an instrument used to analyze and monitor the macro economic environmental factors than can have an effect on the organization.

PESTEL is an acronym for

P - Political

E - Economic

S - Social

T - Technology

E - Environmental

L - Legal

Political Factor - This is all about the role government plays in the economy. This can include – government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions etc.

Studying this would enable organizations respond better to current trends and prepare better for future legislations.

8 0
3 years ago
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