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koban [17]
2 years ago
8

A 60-year old retiree is in a very low tax bracket. He has a low risk tolerance and wishes to make an investment that will provi

de income. Which is the BEST recommendation
Business
1 answer:
pickupchik [31]2 years ago
4 0

Complete Question:

A 60-year old retiree is in a very low tax bracket. He has a low risk tolerance and wishes to make an investment that will provide income. Which is the BEST recommendation?

Group of answer choices.

A. Mid-cap common stock

B. Municipal bond

C. Bank CD

D. Treasure STRIPS

Answer:

C. Bank CD

Explanation:

In this scenario, a 60-year old retiree is in a very low tax bracket. He has a low risk tolerance and wishes to make an investment that will provide income. A Bank certificate of deposit (CD) is the best recommendation.

A bank certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.

Generally, a certificate of deposit pays a higher interest rate to its holder than the regular savings account because the banks invest the money in a business.

<em>Additionally, the bank certificate of deposit is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.</em>

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3 years ago
The following information applies to Caroline, who is single, for 2017:
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Answer:

1. Child support received  ⇒ NOT TAXABLE

2. Life insurance proceeds received as a result of the death of her mother  ⇒ NOT TAXABLE, ONLY INTERESTS RECEIVED FROM A LIFE INSURANCE POLICY ARE TAXABLE, THE PRINCIPAL IS NOT TAXABLE.

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Identify which items Caroline can deduct (fully or partially).

6. Penalty for early withdrawal from savings  ⇒ YOU CANNOT DEDUCT ANY PENALTIES FROM EARLY WITHDRAWALS FROM IRA ACCOUNTS, YOU CAN DEDUCT PENALTIES FROM CASHING A CASH DEPOSIT EARLY, BUT I DON'T THINK THIS IS THE CASE.

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8. Caroline's taxable income in 2017 is $.

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Jury duty fees $75

Contributions to Health Savings Account ($3,600)

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Personal exemption ($4,050)

Her mother cannot be claimed as a dependent because her income was higher than the gross income limit. Since we are not given the number of children, or if they continued to be minors during more than half of 2017, we cannot include them in our calculations. That is also why I considered Caroline a single filer and not a head of household.

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3 0
3 years ago
A group of 10 golfing buddies have the following annual incomes: $32,000, $12,000, $56,000, $120,000, $10,000, $38,000, $70,000,
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The number of golfing buddies = 10

A. = $10,000

B.  = $12,000

C.  = $16,000

D.  = $20,000

E.  = $24,000

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Thus, the lowest quintile received $22,000 ($10,000 + $12,000) from the income distribution.

Learn more: lowest quintile here: brainly.com/question/2392523

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