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Vlad [161]
2 years ago
14

Bernie is a participant in his employer's non-contributory ESOP. Two years ago, his employer contributed stock with a fair marke

t value of $30,000 into Bernie's account. Bernie retired one year later and took distribution of the stock when its fair market value was $40,000. Two years after his retirement, Bernie sold the stock for $50,000. What is the appropriate tax treatment available to Bernie upon sale of the stock?
Business
1 answer:
vampirchik [111]2 years ago
3 0

Answer:

taxable amount = $10,000

Explanation:

given data

2 year ago fair market value = $30,000

fair market value = $40,000

sold the stock =  $50,000

solution

we get here taxable amount  when ESOP sold

so taxable amount = Selling price - fair market value on distribution  date ...........1

put here value

taxable amount = $50000 - $40000

taxable amount = $10,000 long term capital gain

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You can save $1,000 per year for the next six years in an account earning 10 percent per year. How much will you have at the end
kicyunya [14]

Answer:

At the end of the sixth year, you will have:

= $8,487.17.

Explanation:

a) Data and Calculations:

Annual savings = $1,000

Interest rate per year = 10%

Period of savings = 6 years

First deposit = today

From an online financial calculator:

N (# of periods)  6

I/Y (Interest per year)  10

PV (Present Value)  0

PMT (Periodic Payment)  1000

 

Results

FV = $8,487.17

Sum of all periodic payments $6,000.00

Total Interest $2,487.17

8 0
3 years ago
you have $6000 to invest in two stock funds. The first fund pays 5% annual interest and the second account pays 9% annual intere
stira [4]

Answer:

Amount of money invested is $2,000 and $4,000

Explanation:

In this question, we are asked to calculate how much was invested in two different accounts given the amount of money invested in both accounts.

Let the amount of money invested in both accounts be a and b respectively.

Mathematically;

A + B = 6000 ......I

Now we use the formula for simple interest to check the amount that is supposed to be made on Both accounts if he end of a year.

Formula for simple interest is I = PRT/100

Let’s apply this to what is on ground:

5*1* a/100 = 5a/100

Second is

9*b*1/100 = 9b/100

That is 5a + 9b = 38,000. ........ii

Solving Both simultaneously as follows:

Let A = 6000-b from 1

Substitute this into 2

5(6000-b) + 9b = 38,000

30,000 -5b + 9b = 38,000

4b = 8,000

b =$2000

This means a would be 6000 - 2,000 = $4000

8 0
3 years ago
Write a program that calculates the minimum fixed monthly payment needed in order pay off a credit card balance within 12 months
salantis [7]

Answer:

monthly payment = (total amount owing+interest to be paid) / 12 months

Explanation:

Monthly repayments include the total amount owing on the credit card, plus the interest to be paid. This amount should then be divided into 12 monthly payments in order to get one constant amount to be paid each month for the 12 month period. We will assume there are no other factors affecting the amount, other than interest.  

The formula to calculate the monthly repayments in the credit card is as follows:

(total amount owing + interest) / 12 months

For example, say the amount owing was $100 and the total interest to be paid was $20; the monthly repayment would be calculated as ($100+ $20) / 12 months. This would mean the credit card holder pays $120/12 = $10 per month in order to repay the debt.

6 0
2 years ago
flora Quinton is buying a new air compressor for her auto repair shop. it sells for $1,299. She makes a down payment of $199 and
Luba_88 [7]
I believe the answer is $1,100
3 0
3 years ago
Which of the following could a typical third grader handle?
N76 [4]

10-15 push ups: it's because pull-ups are taxing for an 8 year old, using my brother for an example who can hardly lift himself up. Sit-ups are taxing on the back due to the amount of muscular endurance and strength while a mile running-I laugh- converted to meters is approximately 1609 meters. I'm in Junior high yet I can  only do 900. Thus, it can be concluded the most appropriate activity a third grader could handle is a simple push-up.  

4 0
3 years ago
Read 2 more answers
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