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joja [24]
2 years ago
7

George purchased a life annuity for $3,200 that will provide him $80 monthly payments for as long as he lives. Based on IRS tabl

es, George's life expectancy is 100 months. How much of the first $80 payment will George include in his gross income?
Business
1 answer:
IRISSAK [1]2 years ago
8 0

Answer:

$48

Explanation:

Data provided in the question:

Life annuity = $3,200

Monthly payments = $80

George's Life expectancy = 100 months

Now,

The annuity exclusion ratio = \frac{\textup{Life annuity }}{\textup{Life expectancy}}

or

The annuity exclusion ratio = \frac{\textup{3,200}}{\textup{100}}

or

The annuity exclusion ratio = $32

Therefore,

Return on capital per payment = $32

Hence,

The amount of the first $80 payment will George include in his gross income = $80 - $32

= $48

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Paolucci Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its ave
ratelena [41]

Answer:

$12.50

Explanation:

Variable costs are those costs which changes with the change in activity driving the cost (Sales. production etc.). It can be direct or indirect costs.

Whereas fixed costs are those costs which remains constant and do not change with the change in activity.

All the following costs are variable costs

                                                          Average Cost per Unit

Direct materials                                   $6.45

Direct labor                                          $3.30

Variable manufacturing overhead     $1.25

Sales commissions                              $1.00

Variable administrative expense       <u>$0.50</u>

Total variable cost per unit                <u>$12.50</u>

All the following costs are fixed costs.

Fixed manufacturing overhead         $3.00

Fixed selling expense                        $1.05

Fixed administrative expense           $0.60

3 0
3 years ago
What is the minimum number of days for an informal complaint to be resolved? (equal opportunity complaint process, page 2)?
krek1111 [17]
I believe there are no minimum number of days for this.
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What type of relationship do a lawyer and a client have?
VMariaS [17]
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7 0
3 years ago
The Guitar Shoppe reports the following sales forecast: August, $150,000; September, $170,000. Cash sales are normally 30% of to
nadezda [96]

Answer:

<u>Thus Calculation of September Cash Receipts is as follows:</u>

September Sales ( $170,000 × 30%)  = $51,000

August Sales ( $150,000 × 55%)        =  $82,500

Total                                                     =  $133,500

Explanation:

September cash receipts will include the following :

  1. 30% of September Sales
  2. 55% of August Sales

<u>Thus Calculation of September Cash Receipts is as follows:</u>

September Sales ( $170,000 × 30%)  = $51,000

August Sales ( $150,000 × 55%)        =  $82,500

Total                                                     =  $133,500

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