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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.

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The start up costs for a project are $25,000. The cost of capital for the firm is 12%. The sum of the present value of the cash
Kobotan [32]

Answer:

net present value = $1,420.14

Explanation:

given data

start up costs  = $25,000

cost of capital = 12%

present value of the cash flows = $26,420.14

solution

we get here net present value will be express as here

net present value = present value of the cash flows for the first three years - start up costs ........................1

put here value and we get

net present value = $26,420.14 - $25,000

net present value = $1,420.14

6 0
2 years ago
Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short-term note paya
masya89 [10]

Answer:

1. January 10:

Inventory account increases by $25,500

Account payable increases by $25,500;

Total asset will increase by $25,500 and total liabilities will increases by $25,500. Equity remains the same.

March 1:

Cash account increases by $55,000.

Promissory note payable increases $55,000

Total asset will increase by $55,000 and total liabilities will increases by $55,000. Equity remains the same.

2.

The amount of cash will be paid at maturity date (Sep 1) of the note is $56,787.5

3.

Jan 10: debt-to-assets ratio = 0.70, thus increase in Debt to asset ratio comparing to the ratio 0.69 at the beginning

March 1: debt-to-assets ratio = 0.72, thus increase in Debt to asset ratio comparing to the ratio 0.69 at the beginning

Explanation:

- Working note for 2: Repayment will include Face value + Interest rate expenses incurred = 55,000 + 55,000 * 6.5% *6/12 = $56,787.5

- Working note for 3:

Jan 10: Debt-to-asset ratio = (450,000 + 25,500) / (650,000 + 25,500) = 0.70

Mar 1: Debt-to-asset ratio =(450,000 + 55,000) / (650,000 + 55,000) = 0.72

6 0
3 years ago
Orear Corporation manufactures two products: Product Z34D and Product J25M. The company uses a plantwide overhead rate based on
Molodets [167]

Answer:

30%

Explanation:

For computing the percentage of the total overhead cost we need to find first plantwide overhead rate and Product J25M (absorbed overhead) which is shown below:-

Plantwide overhead rate = Total plant overhead ÷ Total number of labor hours

= ($120,000 + $90,000 + $84,000 + $300,000) ÷ (7,000 + 3,000)

= $594,000 ÷ 10,000

= 59.4 per labor hour

Product J25M (absorbed overhead) = Plantwide overhead rate × Direct labor hours of Product J25M

= $59.4 × 3,000

= $178,200

So, the Percentage of the total overhead cost = Product J25M (absorbed overhead) ÷ Total plant overhead × 100

= $178,200 ÷ $594,200 × 100

= 30%

6 0
3 years ago
Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supp
Hatshy [7]

Answer:

Explanation:

                                                         Make          Buy           Net income

Variable manufacturing costs      $54,000        $0            $54,000

Fixed manufacturing costs           $27,000      $27,000     $0

Purchase price                              $0                $67,500    -$67,500

Total annual cost                          $81,000      $94,500    -$13,500

Conclusion: Manson Industries should make the part as making part save cost than buying it.

<u>Workings</u>

                                                    Make           Buy

Variable manufacturing costs  13500*4      0

Fixed manufacturing costs       13500*2      13500*2

Purchase price                           0                 13500*5

3 0
3 years ago
Which is LEAST important to maintaining a healthy credit score?
12345 [234]
The answer is either B or C. I think it may be C.
4 0
3 years ago
Read 2 more answers
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