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iragen [17]
3 years ago
5

Sacha, a dentist, has significant investment assets. She holds corporate bonds, municipal bonds, stocks and mutual funds. Sacha

paid $1,500 to an investment adviser to conduct a portfolio review and to prepare a recommendation for rebalancing her portfolio. Which of the following statements is correct regarding the tax treatment of the $1,500 fee?A) Sacha can include the full fee as an investment-related expense in her miscellaneous itemized deductions.B) Sacha can include the full fee as an investment-related expense in her "for AGI" deductions.C) Part of the $1,500 fee will be disallowed due to the holding of the municipal bonds.D) The $1,500 fee is not deductible.
Business
1 answer:
erik [133]3 years ago
4 0

Answer:

C) Part of the $1,500 fee will be disallowed due to the holding of the municipal bonds

Explanation:

the investment-related expenses are deductible as the miscellaneous itemized deductions. in the case the tax-exemp securities are help, the proportionate investment-related expenses are allocated to these securities and the are not allowed since the income is tax-exempt.

You might be interested in
Tool Manufacturing has an expected EBIT of $ 39,000 in perpetuity and a tax rate of 33 percent. The firm has $ 80,000 in outstan
Thepotemich [5.8K]

Answer:

$208,530

Explanation:

The computation of value of levered firm is shown below:-

For computing the value of levered firm first we need to compute the Value of Unleavened firm

Value of unlevered firm = Earning before interest and tax × (1 - tax rate) ÷ Cost unlevered of Capital

= $39,000 × (1 - 33%) ÷ 15%

= $39,000 × 0.67 ÷ 15%

= $39,000 × 4.67

= $182,130

Now, the Value of levered firm = Value of unlevered firm + Outstanding debt × Tax rate

= $182,130  + $80,000 × 33%

= $182,130  + $26,400

= $208,530

3 0
3 years ago
during the cooling off period, underwriters would be allowed to do all of the following except a) take indications of interest.
ss7ja [257]

During the cooling off period, underwriters would be allowed to do all of the aforementioned except: b) advertise the issue.

<h3>Who is an underwriter?</h3>

An underwriter can be defined as an individual or business firm that is saddled with the responsibility of evaluating and assuming another party's financial risk for an agreed amount of money (fee), which is often paid as a spread, commission, interest, or premium.

This ultimately implies that, an underwriter helps a lender (financial institution) in determining the level of risk associated with an issue.

As a general rule, underwriters would be allowed to do all of the following during the cooling off period:

  • Take indications of interest.
  • Publish a tombstone.
  • Distribute a preliminary prospectus.

In this context, we can reasonably infer and logically deduce that during the cooling off period, underwriters would only be allowed to do all of the aforementioned except distribute sale or advertise the issue.

Read more on underwriters here: brainly.com/question/28026586

#SPJ1

3 0
2 years ago
Which of these statements is true?
AnnZ [28]
The correct statement is Inflation is problematic if unexpected

Money loses purchasing power during inflation and there's too much of it.
8 0
3 years ago
Andrew is offered a job in Little Rock, where the CPI is 80, and a job in New York, where the CPI is 125. Andrew's job offer in
RSB [31]

Answer:

The job in New York should offer $65,625.

Explanation:

Andrew is offered a job in Little Rock, where the CPI is 80, and a job in New York, where the CPI is 125.  

Andrew's job offer in Little Rock is $42,000.  

To represent the same purchasing power salary in New York should be

= \frac{CPI\ in\ New\ York}{CPI\ in\ Little\ Rock}\ \times\ Salary\ in\ Little\ Rock

= \frac{125}{80}\ \times\ \$ 42,000

= $65,625

7 0
3 years ago
If 5 Swiss francs trade for $1, the U.S. price level equals $1 per good, and the Swiss price level equals 2 francs per good, the
nordsb [41]

Answer:

0.4 swiss good(s) per U.S good(s)

Explanation:

firstly we calculate how many dollars we get per Frank so we will say $1/ 5 Swiss Franks =$0.2 which is similar to (5x =1, solve for x =1/5 / 0.2 in simple maths )per Swiss Franc thereafter we calculate the how many Swiss Francs per good compared to dollars per good we can get so therefore 2 Swiss Francs per good/$1 per good is the ratio of comparison , hence we treat f(X) as a function of swiss good(s) per U.S good, therefore f(X)= 2 x , knowing that x= 0.2 f(x)= 2(0.2) which will result in f(x)= 0.4.

3 0
3 years ago
Read 2 more answers
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